Unlikely Offshoring Supporter

You may have seen the McKinsey Global Institute report that for each dollar the United States sends to India in the form of offshore jobs, the U.S. economy gains $1.14. A more unlikely voice in favor of offshoring arrived this week in the usually liberal magazine The New Republic. The New Republic article argues that “while offshoring may displace some workers in the short term, in the medium and long terms it represents a net benefit for both domestic businesses and their workers.” Both the magazine and McKinsey, as well as some economists from the Brookings Institution, the Institute for International Economics and others, want to require companies to buy insurance to help employees recover part of their salaries when their jobs are offshored.