Daniel Weintraub writes on a new study commissioned by the California state legislature (in the hands of Democrats) that "suggests that sending American jobs overseas, far from being a blow to employment, can actually help preserve existing jobs and create new ones."
The paper, prepared by the Public Policy Institute of California, warns lawmakers against trying to stem the practice by prohibiting offshoring in state contracts, noting that such a ban would drive up the cost of services and take money away from other programs in the budget." The Legislature has not yet released the study (which Weintraub already has seen). Weintraub: "The last thing they want is a study done in their name that claims shipping jobs overseas is not only good for the economy, but for workers as well." Since the Demos have been making a campaign issue of this, we shouldn’t be surprised that they don’t want to talk about it; the Legislature has already passed a number of
bills banning certain kinds of outsourcing and is headed for the governor’s desk. Virginia Postrell says that only a girlie-man would sign such a bill.
The study states: "Because of the dynamics of the U.S. economy and offshoring’s expected effect on productivity, the overall, longer-run effect of offshoring may be to increase living standards at home." Look for this study to have a national effect.