PRESTOPUNDIT -- "It's a team sport, baby!"

GE's Gary Reiner is bullish on America -- and outsourcing. What's good for GE is good for America, Reiner argues. Quotable:

On a personal basis, Reiner is intensely passionate about what he and GE are doing and says that when a country or company enjoys higher productivity, the benefits extend three ways: to the enterprises, which with higher profits have more to invest; to employees who get higher wages and then spend more; and/or to lower prices, which makes it easier for people to buy. So the way Reiner sees it, no matter which way the higher productivity cake is divided, community prosperity increases.

However, although Chinese manufacturing and Indian services are providing an enormous boost to US productivity, it means fewer highly paid jobs in affected sectors. But Reiner counters that the overall US community is a huge beneficiary with lower priced goods and services, lower interest rates and increasing wealth. Hence it will be able to afford better medical help for the baby-boomers, education for the young and increased rewards to those working in those areas .. (via the Mises blog).

See also "Outsourcing Is Good for America" by Douglas Irwin. (via the Volokh Conspiracy).

Posted by Greg Ransom | TrackBack