Barack Obama wants to improve the American economy. Barack Obama wants to win a second term in November.
Unfortunately for job-seeking Americans, his campaign rhetoric seems at odds with economic growth. Obama is attempting to portray himself as a defender of the American middle class, in contrast to Mitt Romney whose background outsourcing jobs as an executive at Bain Capital allegedly destroyed opportunities for middle America.
Barack Obama’s economic policies have been in stark contrast to reality throughout his presidency, and his outspoken opposition to outsourcing has been no different.
In reality, outsourcing does not lead to a net loss of jobs because they leave to foreign nation, but a net gain because American workers become more efficient.
The economic law of comparative advantage dictates that when trade is open and free, individuals and countries will specialize in the production of goods that they are comparatively best at producing.
The more potential trade partners you have, the further you can specialize.
I’ve said it before, and I will say it again: in a competitive market, laborers are paid the amount of value they add to a firm. Because “outsourcing” some less efficient jobs leaves American workers free to focus on things they are more productive at, their real wages go up.
Beyond this theoretical notion that free trade and outsourcing benefit all workers, including Americans, plenty of documented evidence exists showing that outsourcing creates jobs. Furthermore, there are also plenty of reports of foreign corporations investing in American workers when they are able to make use of our high productivity level.
Middle America has suffered through the depths of the recession for the last few years, stretching back to before Obama took office.
The pain of the rust belt is not due to greedy businessmen like those at Bain Capital or on Wall Street, but because of government regulations which have stifled innovation and reduced flexibility within the workplace.
Alabama’s state Secretary of Commerce touts his state’s “right-to-work” status, which protects workers from overbearing unions and allows a more flexible work environment.
While Obama claims to be betting on America, he’s betting on the ability of government to grow the economy, rather than putting his faith in the American people.
There are reasons why Mitt Romney isn’t the perfect candidate, but his commendable background in the private sector isn’t one of them.
By taking large risks and making unprofitable and newly-forming companies more efficient, Romney allowed American workers to add more value on the job.
That, ladies and gentlemen, is economic growth in a nutshell and why we have a much higher standard of living than our great-grandparents.
