Glen Tenney's Online Resources
Topic: Outsourcing of Jobs 

  

    The articles listed here stem primarily from an article written by Paul Craig Roberts and Senator Charles Schumer in early 2004 that claimed that free international trade is not desirable in cases where capital is able to move freely across borders. The articles are listed in reverse order, with the most recent article listed first. While the original Roberts-Schumer article, published in the popular press by The New York Times, is not listed here, its essential contents are restated in an arguably better fashion by Roberts and the other articles that are listed here.
 

Jobs are Moving Abroad

By Hans Sennholz

 

Can Trade Bring Poverty?

By Robert Murphy

In this follow-up to earlier articles, Murphy does a wonderful job of showing that outsourcing makes Americans wealthier on net whenever foreign workers require a wage that is lower than the next-best wage that the American workers can earn. This is the case because American firms will presumably not hire foreign workers unless their wages are lower than the wage at which American workers will accept. (2004, 4 pages)

The Economics of Outsourcing

By William L. Anderson

Anderson suggests that the push to restrict outsourcing by law relies on the mistaken idea that an economy benefits from higher costs of production.  (2004, 2 pages)

Fewer Workers, More Production

By Jude Blanchette

Blanchette notes that output and productivity are the keys to true prosperity, not more jobs in the economy. (2004, 3 pages)

The Bogeyman of Lost Jobs

By Jude Blanchette

According to Blanchette, the downsizing done by specific firms is good for the economy in general. If firms do not shed excess workers, they will pay the price in competitive global labor and goods markets. (2004, 3 pages)

Capital Exports and Free Trade

By Guido Hulsmann

In this short article, Hulsmann shows how Ricardo’s well-known assumption that only raw materials and consumer goods were traded across borders (and that labour and capital were not mobile between countries) was only an assumption but not a condition for the validity of his free-trade argument. Hulsmann artfully relates how Mises showed that the benefits of free-trade do not rely on Ricardo’s assumptions on labour and capital mobility. (2004, 5 pages)

Free Trade and Factor Mobility

By Robert Murphy

Murphy addresses, in this article, the question of whether it is possible for people within a country to be harmed by innovations that cost people their jobs. While he concludes that it is theoretically possible for this to happen, he demonstrates that specific trade restrictions would still make the situation even worse for the people in such a nation on average. (2004, 6 pages) 

On Ricardo and Free Trade

By Richard C. B. Johnsson

A Swedish Economist, Johnsson provides examples showing that it is not possible for a single country to have absolute disadvantages in all lines of business as long as there is free movement of labor, money and goods. (2004, 2 pages)

Clarifications on the Case for Free Trade

By Paul Craig Roberts

In this article, which is in response to comments on an earlier article on certain exceptions to Ricardo’s work on international trade, Roberts restates the case that the benefits from free trade are dependent on the absence of capital and labor mobility. (2004, 2 pages) 

A Reply to Schumer and Roberts

By George Reisman

In this reply to Senator Schumer and Paul Craig Roberts’ original article on free trade, Reisman argues that the gains to consumers from free trade are always, necessarily, greater than the losses to the firms that are required to compete with foreign producers and foreign workers, thus showing that the argument that factors of production must by immobile is not part of the argument in favor of free-trade. (2004, 2 pages)

 

 

 

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