Treasury's Snow defends U.S. job outsourcing

Forbes ^ | 02.24.04 | Reuters

[yonif]

WASHINGTON (Reuters) - Treasury Secretary John Snow on Tuesday defended U.S. corporations' right to send U.S. jobs offshore to cheaper-labor countries, and said a more productive source for jobs might be found by breaking down global trade barriers.

Snow was asked on CNBC television whether he would advise U.S. corporations to reduce the rate at which they are "outsourcing" U.S. jobs by having them performed in countries like China and India.

"I think American companies need to do what they need to do to be competitive, and as they're competitive, it's good for their shareholders, it's good for their consumers and it's good for their employees," Snow said.

He added: "Enterprises that don't succeed don't create many jobs."

Snow was interviewed from New York, where he visited Wall Street investment houses and made multiple television appearances repeating that the economy was growing and that as it does so, "lots of jobs are going to be created."

He declined to specify how many jobs might be created, though, and how many of the roughly 2.8 million factory jobs lost since the Bush administration took office might be regained this year.

"I'd like it to be the biggest possible number," Snow said, maintaining his distance from a forecast in the Economic Report to the President earlier this month that 2.6 million jobs could be created this year, comparing this year's average employment with last year's average.

Estimates are that it would take average job growth of about 300,000 jobs a month to achieve the administration's goal -- a figure that far exceeds most private forecasts.

Snow also backed up Gregory Mankiw, chairman of the White House's Council of Economic Advisers, who ran into a firestorm of criticism for praising the shifting of U.S. jobs overseas.

Snow noted that Mankiw had "indicated he was misinterpreted from some lack of clarity in what he said" and had in fact sent a letter to U.S. House of Representatives Speaker Dennis Hastert that apologized for creating "the wrong impression."

Job losses and outsourcing, often using computers to ship work -- ranging from x-ray analysis to preparing data information -- to countries where people earn far less and have fewer legal protections in the workplace have become hot-button issues in the runup to November's presidential vote.

Snow said that the United States, with 5 percent of the world's population, still had plenty of opportunity to pry open foreign markets. "We've got to make sure that the rest of the world is open to our farmers, our agricultural producers and out manufacturers," he said.

[RickofEssex]

NUTS

[gonewt]

These guys really do need to shut their mouths.

I get the whole "if it's good for the company, it's good for the consumers" logic. Fine.

But if the CEO rakes in $20+ million/year, and yet the company outsources thousands of American jobs to "cut costs," that seems a little incongruous to me.

[raybbr]

Treasury Secretary John Snow on Tuesday defended U.S. corporations' right to send U.S. jobs offshore to cheaper-labor countries, and said a more productive source for jobs might be found by breaking down global trade barriers.

He's saying that companies will export jobs to the U.S? When has that ever happened?

He added: "Enterprises that don't succeed don't create many jobs."

How does sending jobs overseas translate into more jobs here? I don't see that at all.

[Shermy]

"I think American companies need to do what they need to do to be competitive, and as they're competitive, it's good for their shareholders, it's good for their consumers and it's good for their employees," Snow said.

Mankiw and now Snow. "Competitive" has about zilch to do with it - its about short term labor cost cutting. Snow sounds like an outsourcing PR firm rather than a politician supposedly acting in the interests of America.

Snow said that the United States, with 5 percent of the world's population, still had plenty of opportunity to pry open foreign markets. "We've got to make sure that the rest of the world is open to our farmers, our agricultural producers and out manufacturers," he said.

I.e., they aren't open - just us. That's not "fair" trade.

[raloxk]

these guys want to lose in Nov

[lelio]

Snow said that the United States, with 5 percent of the world's population, still had plenty of opportunity to pry open foreign markets.

I would like to see some numbers about the government's recent pushes into opening up markets. Are they buying any of our stuff? Or is it done just so that US companies can open up plants there and sell us goods and services?

[genefromjersey]

I wonder how well it would work if we outsourced his job to....Sri Lanka,or India.

Caller: This is the President. I'd like to speak to the Treasury Secretary.

Operator: Whom should I say is calling, please ?

Caller: The President

Operator: How do you spell that,please ?

Caller: P-r-e-s-i-d-e-n-t

Operator: I'm sorry, I don't see your name on the list Mr. Pretzel Dent.(Click)

[Clintonfatigued]

Am I being paranoid, or is this a John Kerry TV commercial waiting to happen?

[Shermy]

These guys really do need to shut their mouths.

I respectfully disagree. It's like cockroaches - if you see one in the light, there's numerous more in the dark. I want to know this.

We're seeing what the economic project behind the Bush Admin really is. That Snow repeats with an apparently straight face the purchased-PR smiley face explanations of the outsource industry is scary.

[Mr. Jeeves]

Snow, like Paul O'Neill before him, seems to think he is still in the corporate world, where telling the plain truth clears up misunderstandings. He is speaking to an audience who is less economically literate than the mail-room clerks at one of his old companies, and who need to be soothed and reassured that the monsters are not in fact hiding under their beds. Democrats are great at this kind of fake sincerity - Republicans better learn how to match it or it will cost them.

[chimera]

If Bush loses this election, which seems more and more likely each day, it will be in large part the fault of three people: John Snow, Elaine Chao, and Gregory Mankiw. All three continue to make bonehead statements that are sheer political suicide for Bush. You don't win elections by telling people who are losing their jobs and those that fear they may to be happy about it. This "screw 'em and let 'em eat cake" message that conservatives here on FR and elsewhere insist on putting out there will do nothing but ensure the election of President Kerry, probably with Rat majorities in the House and Senate. Then everyone will scratch their heads and wonder "wha hoppen". Well, look in the mirror, idiots.

[lelio]

He is speaking to an audience who is less economically literate than the mail-room clerks

Try taking that condenscending attitude to one of the millions of people that have recently lost their formerly high paying jobs. "Loosing your job is in the best interest of the country!"

Sure it might be better for them in the long run, but in the long run we're all dead.

[Enterprise]

To a point, I can understand that there are some things that are more cheaply made in other countries. But I cannot understand what makes it ok to outsource information for processing which contains our Social Security Numbers, Drivers license numbers, tax information, credit history, and health information records to foreign nations, especially China! On this point, it simply appears that the Bush Administration is dropping the ball.

[Enterprise]

To a point, I can understand that there are some things that are more cheaply made in other countries. But I cannot understand what makes it ok to outsource information for processing which contains our Social Security Numbers, Drivers license numbers, tax information, credit history, and health information records to foreign nations, especially China! On this point, it simply appears that the Bush Administration is dropping the ball.

[Shermy]

He added: "Enterprises that don't succeed don't create many jobs." How does sending jobs overseas translate into more jobs here?

It doesn't. Even Snow's attempt at a "free trade" argument about opening markets is half-baked. If connected, one would demand open markets before allowing, even promoting outsourcing.

Snow and Bush are arch-globalists - best understood as a quickie profit taking scheme. Long term hurts our economy, and the people, a few profit. the few kick-back campaign contributions and lucrative back-end post-government job placements.

[Mini-14]

Outsource Treasury Secretary John Snow. There's no reason why he should receive top wages to run the treasury, when we could find someone in China to do it for a fraction of the cost.

[teletech]

Are these guys TRYING to lose this election!? Today the President comes out and says he will urge Congress to pass a Constitutional ammendment to protect marriage. Tonight we hear Tom Delay WON'T SUPPORT THE AMMENDMENT! Now THIS! What next!!

[ambrose]

I wonder how many people complaining about Snow's remarks make a point to buy their consumer goods from businesses like Wal-Mart.

[BfloGuy]

He's saying that companies will export jobs to the U.S? When has that ever happened?

How about Toyota, Honda, BMW, Mercedes-Benz, and Siemens?

They've all moved production into the United States from their home countries -- and you're all aware of them.

This controversy over outsourcing is all driven by the media. Count the headlines and make a decision -- no need at all to learn some basic economics.

It's just like what happens after Airline X has a plane crash. For weeks after, every time Airline X experiences an aborted take-off due to soft brakes, a diverted landing because a stewaredess smelled smoke, or a cancelled flight because a part failed, the TV crews are right there.

And even though you've flown Airline X a hundred times without a single problem, you start to think that it's a wonder any of their passengers ever arrive alive.

Well, jobs have been going overseas from here and jobs have been coming here from overseas for decades. The idiotarian press just didn't see fit to cover it till now.

Wake up, people.