Tuesday, June 26, 2012


IT'S A SMALL WORLD. At National Review, Kevin D. Williamson snarls at the proles and their déclassé leader:
Could somebody please get Barack Obama to shut up about “outsourcing” until some undergraduate aide has explained to him what the word means? As it stands, the president is showing himself an ignorant rube on the subject, and that is to nobody’s advantage. 
The Obama campaign, as you probably know, has been running ads denouncing Mitt Romney’s role at Bain Capital, in which Romney made various business deals that had the effect of making a whole lot of money for Bain’s customers while also allowing a lot of dirty foreigners to eat, and God knows the world would be better off if a billion-some Chinese were hungry and desperate, that being an obvious recipe for global stability.
I think there must be some small, special sub-audience at rightwing publications, possibly comprising Megan McArdle and a couple of her commenters, who think that normal Americans watching their jobs and their whole economy circle the drain should give a shit about the Chinese the way rich investors do.
Because the Obama campaign knows that one of its most important constituencies is economically illiterate yokels — a demographic to which the president himself apparently belongs — it is on the airwaves claiming “Romney’s never stood up to China — all he’s ever done is send them our jobs.’’ (Whose?)
"Whose?" You know, to people like this, Americans today are like Mau Maus, Apaches, or any other dispossessed indigenous peoples; when they demand back what was theirs, the Williamsons snort and wonder how these wretches could possibly claim such a right --  was it they, after all, who built this perfectly lovely foreign office, pavilion, and fountain? Well, maybe their labor built it, but the thinking was all the colonizers' -- all the wretches did before was live on it, fulfilling in no way the demands of global capital. "Whose?"

What Williamson's defending is well-explained in BusinessWeek, where they don't have to try as hard to bullshit anyone. The magazine discusses the trend away from sending jobs to India (you will note they use "offshoring" and "outsourcing" more or less interchangeably):
[Latin America and eastern Europe] are challenging the subcontinent’s dominance in outsourcing as American corporations increasingly ship higher-level jobs offshore. India had substantial advantages in offshoring’s first phase: plenty of English speakers to staff call centers and enough tech talent to run remote data-processing and computer support centers—all at about a 60 percent discount to stateside workers. But having wrung substantial costs out of back-office functions, U.S. companies are exporting skilled white-collar jobs in research, accounting, procurement, and financial analysis. 
Because these jobs aren’t mass-processing functions, India’s forte, there are greater opportunities for countries such as Argentina and Poland, which have higher labor costs than India. Using an outsourcing firm to hire an entry-level accountant in Argentina, for example, costs 13 percent less than a similar U.S. worker, while an Indian worker would cost 51 percent less. But many employers moving higher-end jobs offshore care about more than just getting the lowest wage. “The higher-value outsourcing jobs require a greater understanding of business context and a higher amount of interaction with clients,” says Phil Fersht, chief executive officer of HfS Research, a Boston outsourcing research firm. 
Cities such as São Paulo have large groups of young people with engineering and business school degrees who speak English and are capable of doing everything from developing video games to analyzing mortgage defaults for U.S. companies...
In other words, having laid waste to American blue-collar jobs with cheap equivalents overseas, they plan to do the same with executive and even lower-management functions. (C-suite types, of course, needn't worry.) You have to spend a bit more up front, but in the long run it's worth it! 

The same people who used to bitch about foreign aid are now telling us we should be happy that our livelihoods have been wealth-extracted, because some of the skim went to workers in other countries. Are these fuckers still wearing American flag pins? The things should be setting their lapels on fire.

UPDATE. Some commenters recognize Williamson's POV as a libertarian schtick. Yes, it is -- see McMegan Junior Grade Katherine Mangu-Ward sneering at protectionists who "make the case that American jobs are intrinsically better or more valuable than Chinese jobs" and their "skewed, provincial view of the world."

Bonus it-figures from Mangu-Ward's item: "Matt Yglesias blogs about the story here, and his analysis is spot on." Yglesias, whom Chuck Gilligan more recently finds defending Apple's $22,800/yr as the correct wage for "geniuses" (those of us who are not geniuses will of course have to make do with less), will in the Romney Administration join the New York Times as its token liberal columnist.

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