Donald Trump, Outsourcing, Jobs, Economy
Donald trumps critics: Outsourcing creates jobs in the long run
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In his blog on the Trump University Web site, famed real estate mogul and reality TV star Donal Trump cites studies that show that using low-cost, foreign labor ultimately makes U.S. companies more profitable and competitive, creating a cycle whereby they ultimately are able to add more higher-paying, higher-value jobs domestically. According to Trump:
We hear terrible things about outsourcing jobs--how sending work outside of our companies is contributing to the demise of American businesses. But in this instance I have to take the unpopular stance that it is not always a terrible thing.
I understand that outsourcing means that employees lose jobs. Because work is often outsourced to other countries, it means Americans lose jobs. In other cases, nonunion employees get the work. Losing jobs is never a good thing, but we have to look at the bigger picture.
Last year, Nobel Prize-winning economist Dr. Lawrence R. Klein, the founder of Wharton Econometric Forecasting Associates, co-authored a study that showed how global outsourcing actually creates more jobs and increases wages, at least for IT workers. The study found that outsourcing helped companies be more competitive and more productive. That means they make more money, which means they funnel more into the economy, thereby, creating more jobs.
I know that doesn't make it any easier for people whose jobs have been outsourced overseas, but if a company's only means of survival is by farming jobs outside its walls, then sometimes it's a necessary step. The other option might be to close its doors for good.
See Donald Trump University for more information
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