We lose jobs every year to other countries with cheaper labor than the United States. No one really disputes this, although some say this is not a problem, while others say it is the death of the American economy. I'm undecided on the issue, as I believe that this can work in our favor as much as against us, depending on which jobs leave and which stay. Americans who learn to tap into this global economy are definitely profiting, while domestic companies and workers feel the pressure of foreign competition. On the other hand, companies like Google and Microsoft do extremely well because of their multinational structure. I've personally seen how this can benefit us, as many of my own internet customers send money into my local economy from far away.
What I don't like seeing are countries where the workers take our jobs, but don't become consumers in return. Henry Ford understood the benefit of ensuring that his workers were paid enough to also become his customers, and he is more or less the father of the modern American middle class. It's doubtful Ford would ever have considered outsourcing, and likely instead would have lobbied to change the rules so as to reward companies for hiring American workers.
My personal proposal represents a rather simple but effective compromise: pass a law requiring any American company to pay the American minimum wage to all of its workers, regardless of where those workers are located. Raising the American minimum wage to a living wage would also be good, but even without that, at least every job created by an American company would pay our minimum wage, eliminating the primary incentive for sending the jobs offshore in the first place. Throw in the cost of managing a foreign workforce, and the benefit to the economy of strengthing our consumer class of workers, and our economy would become much stronger and self-sustaining.
Anyone got a better idea?
