Outsourcing versus Offshoring…..Does Obama know the difference?

Much has been made of late by the mainstream media, at Obama’s request, about Mitt Romney and outsourcing.  Obama and his liberal lackies in the MSM have tried to give voters the impression that Mitt Romney is a big bad businessman because he ‘allegedly’ outsourced jobs to China and India while in charge of Bain Capital.  (More of that class warfare stuff!)

Whether or not Romney outsourced jobs will be determined after some investigation.  But I don’t think Barack ‘I never had a real job in my life’ Obama even knows the difference between outsourcing and offshoring.  And furthermore, is outsourcing a bad thing?

Outsourcing is NOT necessarily the process of moving production out of the country!  Outsourcing is the process of moving a function of the company outside the company.  For instance, the company named ‘Paychex’ is hired to outsource the payroll process for many organizations.  There are lots of outsourcing resources used by almost EVERY private company in the United States.  If an outside cleaning company is used to scrub the toilets in an office building – that is outsourcing!  If a landscaping company is used to mow the lawn of a local funeral home – that is outsourcing!  If a specialty marketing firm is used to come up with a new marketing campaign for a company – that is outsourcing!  Outsourcing is used ALL the time by companies in the United States.  The vending machine full of soda and snacks in your cafeteria is outsourced.  The window washers that keep your office view spot-free are outsourced.  Outsourcing is common and logical.  Why have a full time employee to watch over a snack machine that needs reloading once a week?  Why have a full time window washer on payroll when the windows need washing only once a season?  I guess in government things are different…

What Obama is accusing Romney of doing is ‘really’ called Offshoring.  Obama clearly does not know the difference between the two.  Offshoring is the process of moving a function of the company overseas.  So when American companies like Nike and Reebok have their athletic shoes manufactured in China – that is known as offshoring.  Will Obama soon tell voters that Nike and Reebok are big bad businesses because they chose to move production to a country where unions can’t impose work slowdowns and escalate wages?  

Most US companies offshore production because it is labor intensive, and foreign labor is far less expensive than it is here in the USA.  Not only is labor less expensive, the rules and regulations imposed upon companies regarding environmental issues, work standards, and taxes are much more restrictive and choking here in the USA.  In other words, there are lots and lots of reasons why companies offshore their work.  None of which, unless you are Barack Obama make you a bad person.  After all, is John Kerry a bad person?  Heinz has lots of foreign manufacturing locations.  Is Coke a bad company?  If so then talk to Deval Patrick who managed their foreign labor contracts in South America.  Can you find a company more American than Coke?  Yet under Deval Patrick the manufacturing was done in south America.  Why didn’t Deval Patrick demand those jobs be returned to the domestic US where they once were?  

Offshoring is most often a good thing.  It allows US consumers to have things at a much lower price than they would otherwise.  Those shoes you’re wearing would double in price if they were made n America.  That is a fact!  I know that because I work in the footwear industry. You could also double the cost of your apparel, IPads, children’s toys, and so many other things.  Americans enjoy a luxurious standard of living in large part due to offshoring, and outsourcing.  

May I also remind you that the US gains extensively from offshoring!  Yup, all those cheap shoes pay a hefty import tax before they make their way to your store shelf.  The federal government taxes foreign imports a lot.  A well crafted pair of shoes imported from China might pay several dollars to get in the country.  That is why athletic shoes (originally all canvas) became popular – they were less highly taxed than leather shoes.  In truth, the federal government makes more profit on the shoes than do the China workers that make them.  

So Obama is playing you for fools with his claims that Romney is not worth electing due to ‘alleged’ outsouring.  The United States would collapse overnight without offshoring and outsourcing.  But then again – how the heck would a community organizer from Chicago know anything about that?

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