Free Markets, Free People


“Outsourcing” and “Offshoring” are not the same thing

John Hinderaker at Powerline makes a point that I wish more people would make:

President Obama has decided to make the claim that Mitt Romney “outsourced” jobs as head of Bain Capital a major theme of his reelection campaign. Today in Waterloo, Iowa, Joe Biden repeated the “outsourcing” mantra.

I’m not sure that either Obama or Biden has any clear idea what outsourcing means, and their application of the charge to Romney’s business career is dubious at best.

I’m not sure they understand the term either.  It is entirely probable that Mitt Romney’s Bain Capital did outsource jobs – but that’s not necessarily bad.

As I understand outsourcing, it can be as simple as a company deciding, for whatever reason (but usually because of cost and/or efficiency) to quit doing something internally and contract the work outside the company.  So instead of making widgets to go in their gadget, they contract with another company to make the widgets for their gadgets.  The savings in cost and efficiency go to the bottom line and make the company more profitable (and, obviously, helps the bottom line of the new widget maker as well).  Depending on the circumstances, such outsourcing could end up with a net job gain.

Offshoring, of course, is when the job is moved, well, offshore. To another country.  A net job loss.  Certainly an outsourced job can also be offshored.

This is offshoring:

The Obama campaign spent nearly $4,700 on telemarketing services from a Canadian telemarketing company called Pacific East between March and June, a Washington Free Beacon study of federal election filings shows.

Pacific East is not the only overseas telemarketing firm raking in cash from the president’s reelection campaign. Obama paid a call center in Manila, Philippines$78,314.10 for telemarketing services between the start of the campaign and March.

Pacific East is headquartered in British Columbia, Canada, though the campaign issued more than a dozen checks to a P.O. box located in Washington State—about 1,000 feet from the Canadian border and 9 miles from its headquarters in Canada.

Neither Obama for America nor Pacific East returned requests for comment.

I’m sure they didn’t.  Ironic, no?

Someone pass this along to Joe Biden, will you?

~McQ

Twitter: @McQandO

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4 Responses to “Outsourcing” and “Offshoring” are not the same thing

  • Two decades ago, I wrote in my novel about the imaginary nation of New Colombia having a policy of finding a nation with heavily subsidized ship-building, and sourcing the hulls for their military vessels from them.  Great joke on the taxpayers of the subsidizing nation!
    BUT it makes NO sense to procure any-FLUCKING-thing like microchips from the CHINESE MILITARY.
    Yet, here we are…

  • North Carolina lawmakers approved a nonbinding resolution Tuesday asking the Democratic National Convention to change its rules and “respect North Carolina’s right-to-work laws.”
    It comes after Republicans raised concerns about North Carolina firms not getting contracts for the September convention because they are not unionized shops.

    Shoot. The Democratic National Convention has been outsourcing jobs.  Apparently, Charlotte is considered “union-hostile.”

    • The unions need to get the NLRB to prevent the DNC from having their meetings in North Carolina.

      Worked for Boeing, right?