Fed: Outsourcing helps U.S. economy
Thomas F. Siems, senior economist at the Dallas federal reserve, said that offshore outsourcing results in overall economic gains in the long run. According to him, lower consumer prices, better products and higher productivity growth are among the benefits of outsourcing.
And while Siems recognized the negative effects of outsourcing, he advised that it would be better to accept the challenge of competition and resist protectionism.
Siems said, "Indeed, the secret to faster growth and greater prosperity lies in allowing individuals and businesses to do what they do best — and outsource the rest." He added that global outsourcing makes companies become more dynamic.
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It is a shame that US programmers are totally out of work. But businesses have to compete for the cost of goods sold. They won’t be able to compete unless they reduce the cost of data processing. The workers in one fileld loose the jobs. But the cost of goods sold remains low and hence the inflation keeps under check. So it may be unpatriotic thing to do for the Feds to say Outsourcing is good for the Economy, but it is a very Sad Fact. It may not look like it but I’m US citizen.
Comment by Satish Bhardwaj on March 10, 2006 7:43 am