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Is Barack Obama an economic patriot and Mitt Romney an outsourcing pioneer?

The scathing attack of Ohio governor Ted Strickland’s on Mitt romney set the tone of this electoral battle will take place in the next few months. Strickland thundered, “ To Romney all profits are created equal, whether made on our shores or off,” adding that the GOP nominee has “so little economic patriotism that even his money needs a passport…” The basis of of these accusation is Bain Capital (co founded by Mitt Romney), which invested in plenty of companies that offshored jobs.

 

Democrats manifesto says - “The Democratic Party believes in insourcing so that America can out-build the rest of the world again."It further says "We want to cut tax breaks for companies that are shipping jobs overseas and for special interests, and instead, offer tax breaks to companies that are investing right here in the United States of America, betting on American workers who are making American products we sell to the world that are stamped with three proud words -- Made in America," it said.

The big question is even though US president Barack obama is making huge hue and cry about an emotional issue. how much has he been successful in creating jobs during his tenure. Is he putting forward a debatable argument or is it deliberate well thought out strategy that by touching upon emotional issues he will get a walk over to the white house.

 

Though obama’s campaign states that "Our strategy is paying off. After decades of watching American companies take jobs to other countries, we're beginning to see entrepreneurs and manufacturers make the decision to keep factories and production factories here in the US -- and even bring back jobs from overseas." Critics are evenly divided over such claim. Obama’s basis for this claim is The Congressional Research Service report by James K. Jackson which attempts to study Outsourcing and Insourcing Jobs patterns in the U.S. A deep look study at the report and one can conclude that the job creation trend has more or less remain same (we are comparing post 2008 period with pre 2008)

 

This brings us to the most essential question. Why companies outsource? and can you really brand them as traitors if they resort to such practices to survive in such a difficult economic period. No, You can not. Moreover, who are responsible for this economic crisis? Business Process Outsourcing isn't. It is the government's and banker's wrong set of policies. Increase in Outsourcing is a natural byproduct of the fall out of wall street’s debacle . Agreed that outsourcing didn't begun during the recession but it did pick up the growth. If US multinationals are still competitive and surviving it is due to outsourcing. The current rhetoric seems to deflect the attention of the voters from the main issues and take the maximum mileage from the emotional ones.

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