Outsourcing fears based on myths, say experts Monday, April 19 2004 09:33 Hrs (IST)
Washington:
Amidst the furore in the US over outsourcing to countries like India, experts have dubbed as "myths" the fears on sending jobs overseas, saying more Americans are now employed than ever before.
"The benefits of sending jobs overseas have been almost entirely ignored," Tom Kane, research fellow at the Center for Data Analysis, Brett Schaefer, Fellow at the Center for International Trade and Economics and Alison Fraser, director of the Institute for Economic Policy Studies at The Heritage Foundation said.
There is a real danger that politicians working with incomplete or incorrect information will hobble American competitiveness, they wrote in the Indianapolis Star.
They said it is a "myth" that America is losing jobs. But the household employment survey shows that there are 1.9 million more Americans employed since the recession ended in November 2001. There are 138.3 million workers in the US today more than ever before.
Meanwhile, the unemployment rate is low in historical terms at 5.6 per cent and the work force has been growing. There are now 2.03 million more people in the labour force than in late 2001, they said.
Terming as another myth the accusation that outsourcing will cause a net loss of 3.3 million jobs, they said outsourcing has little net impact, and represents less than 1 per cent of gross job turnover.
Refuting the "myth" that free trade and free labour will harm US, they said economic freedom is necessary for economic growth, new jobs and higher living standards.