NCPA - National Center for Policy Analysis

OUTSOURCING DRIVEN BY COSTLY GOVERNMENT POLICIES

October 22, 2004

Foolish government policies are to blame for jobs moving abroad, not wealthy CEOs, says author Todd Buchholz in his new book, "Bringing the Jobs Home".

While the reality is that many foreigners are willing to work for less money, he says, U.S. domestic policy has made problems worse.

According to Buchholz:

  • America?s educational system turns out too few well-schooled workers, leaving the nation particularly uncompetitive against foreigners for specialized jobs.
  • The U.S. social welfare system -- such as Social Security, Medicare, health insurance, workers' compensation and unemployment insurance -- drives up employer costs.

Moreover, Buchholz says litigation is out of control in the United States, destroying large numbers of jobs in the process. He questions: "Why would anyone hire Americans when less litigious people are eager to work elsewhere?"

Buchholz offers numerous remedies to these institutional failings, including the reduction of government licensing requirements and scaling back wrongful termination rules.

Source: Ira Carnahan, "The Lowdown on Labor Costs," Wall Street Journal, October 20, 2004; based upon Todd Buchholz, "Bringing the Jobs Home," Sentinel, September 2, 2004.

For WSJ text (subscription required) http://online.wsj.com/article/0,,SB109823407655050165-search,00.html

 

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