Insourcing: Millions of High Paying Jobs Replace Those That Cannot Be Saved

It seems hard to believe but millions of jobs arecapital for business. The incentives have been a
lost each year in the U.S. and must be replaced.plus for businesses and workers, leading to many
Foreign companies have provided over 6 millionof these top insourced jobs.
jobs here in the U.S. in recent years, most ofJob losses on the other hand are always
those paying well above the average.unfortunate, especially in manufacturing. These
Job displacement is unfortunate but inevitable. It islosses are taking place worldwide as a result of
a plus, that opportunity exists to wind up betterrising productivity. That cannot be changed.
off than previously.Replacing those jobs and adding millions more is
In a study by the Organization for Internationalthe best answer. The insourcing of jobs is vital.
Investment, we learn that 6.4 million U.S. jobs,Similar to the United States, the typical country
were provided by foreign companies, in recentaveraged losing 11% of its manufacturing jobs,
years, all of these insourced.before the Bush tax cuts. China topped the U.S. in
The study was conducted a short time beforethat area, losing 15% of its manufacturing jobs.
the presidential election. It found that insourcedAs jobs were decreasing, manufacturing output
jobs were growing at a healthy 5.5 percent perwas increasing by 38%. This has resulted in
year, far outpacing the 1.5 percent job loss inreduced prices for many of our purchases. Of
manufacturing jobs, the sector in which most jobcourse, reduced prices are good for all
losses have occurred in recent years.consumers, especially those with the least income.
In a separate study, by the firm Global Insight,Congress Must Make Tax Cuts Permanent
jobs lost in the Information Technology Sector,Many economists believe the job market can
essentially resulted in the creation of 90,000 netremain quite healthy through 2007, if congress
new jobs in 2003.puts the nation's health above politics.
Insourced jobs pay well above the nationalThe February 2007 jobs report combined with
average with virtually every state enjoying a plusthe rapid rise in inflation adjusted wages, revealed
as a result of jobs coming from abroad. Accordingthat the pace of workers gains in this expansion
to Pennsylvania Governor, Ed Rendell, forare well ahead of those in the highly praised
example, 400,000 Pennsylvanians are employedClinton years.
by foreign companies.These wage gains suggest a tight labor market
Two weeks ago, Toyota, announced plans toand continued wage gains. A strong economy
make autos in Mississippi, a move that will addcreates net new jobs including those that are
2000 new jobs in that state. In Michigan, Hyundaiinsourced.
will soon be operating an R&D headquarters.If congress maintains the lower cost of capital,
Honda and BMW have been providing thousandsalong with lower individual tax rates, it will be a big
more jobs in Ohio and South Carolina respectively,plus.
for several years.In the meantime let's hope that many of the
In 2006, foreigners invested approximately $500displaced workers, become the recipients of those
billion more in the U.S. than America did in foreignhigh paying jobs provided by foreign companies.
nations. The 2003 tax cuts reduced the cost of