Friday, May 7, 2004

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Alexei Izyumov's Swiftian jobs program

Izyumov, an associate professor of economics and director of the Center for Emerging Market Economies at the University of Louisville, makes a modest proposal in the Boston Globe about dealing with the real villians behind recent job losses:

While corporate CEOs do send thousands of jobs abroad, someone else steals them by the millions. Patriotic citizens can easily identify the corporate wrongdoers -- as Senator John Kerry does in his campaign speeches and CNN's Lou Dobbs does in his list of the 200-plus worst outsourcers -- but confronting this other enemy is much more difficult. Because this enemy is the US consumer.

In 2003, the United States imported close to $1,500 billion in products, mostly consumer goods such as cars, electronics, and textiles. Assuming that each $50,000 of this spending could support one domestic job, imports killed off close to 30 million American jobs last year. Compared with that, the employment impact of offshore outsourcing is peanuts: The highest estimates put those job losses at no more than 300,000 a year for the last three years....

We hereby appeal to all professional economic patriots, especially these among state and federal legislators: Do not waste your energy fighting the paper tigers of corporate outsourcing. Have courage and go after the main enemy. Make these traitorous consumers repent! Lead them by the way of personal example: Allow no more Italian suits, French perfume, German cars, or Chilean wine in your households. And no more foreign trips either -- you know that every vacation spent in Paris or Cancun means tourism jobs lost in Chicago or New Orleans or Boston.

posted by Dan on 05.07.04 at 11:34 AM




Comments:

I do buy American whenever I can. I pay more for American products sometimes because I know someone somewhere in America is working and pumping money back into our economy. I bought a Ford made in Kentucky. Got a great deal on it and it has been a great car. Since I have been buying American products, I have noticed that they are generally of higher quality.

I also vacation in America. An average citizen could spend their life seeing all the great places in this country and never need to go anywhere else.

We need to get back to appreciating each other and our fellow citizens. If we are waiting for others to build some sort of wonderful utopian worldwide economy with us, we are going to wait a very long time and get our clocks cleaned as well.

Utopian economists and government officials suck

posted by: Lynne on 05.07.04 at 11:34 AM [permalink]



“I do buy American whenever I can. I pay more for American products sometimes because I know someone somewhere in America is working and pumping money back into our economy.”

Let’s take the above quote a step further:

“I do buy Californian whenever I can. I pay more for Californian products sometimes because I know someone somewhere in California is working and pumping money back into our economy.”

“I do buy Los Angeles whenever I can. I pay more for Los Angeles products sometimes because I know someone somewhere in Los Angeles is working and pumping money back into our economy.”

“I do buy Main Street whenever I can. I pay more for Main Street products sometimes because I know someone somewhere on Main Street is working and pumping money back into our economy.”

“I do buy 1234 Main Street whenever I can. I pay more for 1234 Main Street products sometimes because I know someone somewhere at 1234 Main Street America is working and pumping money back into our economy.”

“I do buy from me whenever I can. I pay more for my products sometimes because I know someone somewhere I am working and pumping money back into my economy.”

posted by: David Thomson on 05.07.04 at 11:34 AM [permalink]



Congratulations to Prof. Izyumov (and to our host for quoting him). Swiftian indeed.

posted by: old maltese on 05.07.04 at 11:34 AM [permalink]



OK, OK, I'll cut out the French Champagne and the French Fries.

But if I stopped buying Chinese imports, my house would be bare.

posted by: Mike on 05.07.04 at 11:34 AM [permalink]



Aren't most or at least a significant percentage of Japanese cars in the US made here anyway? And BMW has a plant in Birmingham. At least for cars, I don't think it matters unless you think it's important to have American corporations reinvest the money in America--oh! you mean they invest overseas too?

Lynne is the first person I have heard that used Ford and great car in the same sentence.

posted by: MWS on 05.07.04 at 11:34 AM [permalink]




Can I buy a Volvo, seeing as how it's owned by Ford?

posted by: Jon H on 05.07.04 at 11:34 AM [permalink]



The trouble with satire is that I suspect that many people will not realize that it is satire. Even with the hint inherent in "A modest proposal", many will miss the point, few having read Swift. They will nod their heads, saying, he's right, but that will not cause them to change either their behavior (fortunately), or their ideas about outsourcing (unfortuantely).

posted by: Adrian on 05.07.04 at 11:34 AM [permalink]



If this is satire it certainly fooled more people (onthis blog anyway) than Orson Welles' War of the Worlds!

If it isn't satire, then the 30 million job losses calculation is one of the single faultiest economic calculations I have ever seen. ALmost laughably so.

Unfortunately, there are a lot of people who actually believe this kind of stuff. This sort of faulty economics was at the root of the Smoot-Hawley tariff in 1930.

posted by: DSpears on 05.07.04 at 11:34 AM [permalink]



It's darn good satire; the best satire hooks you and makes you wonder.

posted by: old maltese on 05.07.04 at 11:34 AM [permalink]



"...no more foreign trips either ..." I know this is a satire, nevertheless, I suggest every American should go overseas at least once in their lifetime to rejuvenate their Americanism. I went overseas 3 times in last decade, went to England, southern China, Munich, and Vienna. Every time, after a week or so, I wanted to come home. I missed things such as decent restrooms that you didn't have to pay to use. I missed American stores where you could return/exchange your purchases without being yelled at. I missed having refills for my coffee, and extra hot water for my tea. I missed those little tongs/wax papers which you used to pick up rolls in a bakery/buffet. I missed using credit cards instead of paying cash to see museums. I missed our banks, most of which opened until 5:00 pm and didn't close an hour in the middle of the day for lunch, unlike the Deutsche Bank which closed from 12:30-1:30 for lunch, and closed at 3:30 for the day. I missed going shopping on Sundays. Europeans can mock us or loathe us, but we are who we are, and we have what they don't have. And I feel good about it.

posted by: ic on 05.07.04 at 11:34 AM [permalink]



While this satirical piece was meant to ridicule people fighting outsourcing it is not quite fair at that. Imports are always balanced (well, almost balanced) with exports and as Americans buy foreign goods so do a lot of foreigners (buy American goods). Same goes for tourism.

But the problem with outsourcing is that as American companies send their jobs overseas, NO (or almost no) foreign companies send their jobs back here.

posted by: Gregory on 05.07.04 at 11:34 AM [permalink]



But the problem with outsourcing is that as American companies send their jobs overseas, NO (or almost no) foreign companies send their jobs back here.

Cough.. splutter... What? Do you have any idea how many times we've seen Canadian companies paying decent wages have outsourced their production to the southern US states with no minimum wage and union-hostile legislation?

It may have changed a little bit now, but for *decades* the southern US has been to Canada what China is now to the USA.

posted by: Tom West on 05.07.04 at 11:34 AM [permalink]






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