Wizblog

Another Campaign Theme Taking Shrapnel

Robert Tagorda:

In April, the Democratic-controlled California Assembly asked the nonpartisan Public Policy Institute of California to examine the economic impact of offshore outsourcing. The study found that, while there is too little information to make definitive conclusions, the phenomenon is less problematic than many believe. In fact, it noted that, "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."

How did the Assembly react to these findings? It stalled the release of the report.

And why not? The timing is perfectly lousy for a report minimizing the negative effects of offshoring, even suggesting that it may help, given the Kerry campaign's drumbeat on the issue in recent days.

Bob links to this Dan Drezner post, and so backwards through the blogosphere to Virginia Postrel and others. Drezner's earlier, more detailed discussion of outsourcing in the Financial Times should be required reading for all outsourcing Chicken Littles. See also Brink Lindsey's essay.