White House Supports Offshoring Amid Republican Outcry
Posted: Wed Feb 11, 2004 3:11 pm
Bush, Adviser Assailed for Stance on 'Offshoring' Jobs
By Jonathan Weisman
Washington Post Staff Writer
Wednesday, February 11, 2004; Page A06
Democrats from Capitol Hill to the presidential campaign trail lit into President Bush's chief economist yesterday for his laudatory statements on the movement of U.S. jobs abroad, seizing on the comments to paint Bush as out of touch with struggling workers.
"They've delivered a double blow to America's workers, 3 million jobs destroyed on their watch, and now they want to export more of our jobs overseas," said John F. Kerry, the Massachusetts senator and front-runner for the Democratic presidential nomination. "What in the world are they thinking?"
Rep. Donald Manzullo (R-Ill.) called for the resignation of N. Gregory Mankiw, the chairman of the White House Council of Economic Advisers and a prominent Harvard University economist. Manzullo said industrial state Republicans are furious.
"I know the president cannot believe what this man has said," Manzullo said. "He ought to walk away, and return to his ivy-covered office at Harvard."
As Mankiw released the annual Economic Report of the President, he said Monday that the "offshoring" of U.S. service jobs is only "the latest manifestation of the gains from trade that economists have talked about" for centuries.
"Outsourcing is just a new way of doing international trade," Mankiw told reporters. "More things are tradable than were tradable in the past and that's a good thing."
The report itself, under Bush's signature, offered similarly encouraging words, asserting that "when a good or service is produced more cheaply abroad, it makes more sense to import it than make or provide it domestically." It also said growing competition with China has not been an important factor in U.S. manufacturing job losses.
The White House tried to take the political sting out of the issue yesterday, emphasizing the funding Bush has sought for job re-training, community colleges and "personal re-employment accounts," which laid-off workers could use any way they see fit to find a new job.
"The president's view is that American workers are the best workers in the world, and he is committed to free and fair trade. He is committed to a level playing field," said White House spokeswoman Claire Buchan, "and believes we have to prepare workers for the economy of the future."
Bush's 2005 budget request does increase spending on his new proposals, as well as job training under the Trade Adjustment Assistance Act. But other programs face cuts or elimination, such as one-stop career centers, youth opportunity grants and migrant worker training.
The statements on "offshoring" only fueled attacks on Bush's job-creation record from Democrats who have made economic nationalism a centerpiece of the campaign season. One Senate Democratic aide promised the words would become staples for every Democratic campaign this fall. Senate Minority Leader Thomas A. Daschle (D-S.D.) opened a meeting with reporters by offering his critique of Mankiw's economics.
"This is actually now the position of the White House that they support outsourcing of jobs, jobs going abroad, saying that that's good for our country," he said. "Well, you tell that to the 9 million Americans who are out of work."
Mankiw faced the criticism in person when he appeared before the congressional Joint Economic Committee to present the economic report. Rep. Fortney "Pete" Stark (Calif.), the panel's ranking Democrat, told him, "Bush stands idly by as jobs continue to take flight from the U.S., and now we know why. It's part of his economic plan."
Mankiw and the president's report contend that the U.S. economy ultimately will benefit when the production of goods and services finds its way to the nation that can render them most efficiently.
Mankiw acknowledged the pain that trade-related dislocations can have for individuals.
"We need to help workers find jobs and make sure to create jobs here," he said. "But we shouldn't sort of retreat from the basic principles of free trade."
WHouse stands by adviser despite stance on exporting jobs
Reuters, 02.11.04, 12:17 PM ET
By Adam Entous
WASHINGTON, Feb 11 (Reuters) - The White House on Wednesday stood by a top economic adviser who critics have accused of encouraging companies to export jobs overseas, a factor in heavy job losses during George W. Bush's presidency.
At issue is the practice of a growing number of U.S. companies to move all or a portion of their operations to places like Mexico, India and China, where labor costs are lower and goods can be produced more cheaply, in order to improve profits.
With political concern about factory job losses heating up ahead of the November presidential election, White House spokesman Scott McClellan said "any job loss is regrettable."
He brushed aside suggestions that Gregory Mankiw, who chairs the White House Council of Economic Advisers, be fired for pointing out the potential economic merits of "outsourcing" jobs overseas.
"We certainly don't want to do anything that would undermine free trade," McClellan said.
Mankiw sparked an uproar earlier this week with comments that appeared to laud "outsourcing" by U.S. companies overseas.
"Outsourcing is a growing phenomenon, but it's something that we should realize is probably a plus for the economy in the long run," he said.
Democrats seized on Mankiw's comments, saying it was evidence that the Bush White House was insensitive to the plight of out-of-work Americans.
At least one lawmaker has even suggested that Mankiw resign over the flap.
"That's kind of laughable," White House spokesman Scott McClellan said. "Our economic team is doing a great job helping the president work to strengthen our economy even more."
McClellan said Bush's policies were creating new jobs in the United States. "Certainly free and fair trade is important to strengthening our economy even more and expanding job growth here at home," he added.
In addition to Democrats, some U.S. business leaders have criticized Mankiw.
A traditional base of support for the Republican administration, the National Association of Manufacturers accused the White House of being "insensitive" to unfair trade and complained that not enough was being done to help American manufacturers.
Nearly 2.8 million factory jobs have been lost since Bush took office and the issue looms large ahead of November's vote, where victory in rust-belt states like Ohio, Illinois, Pennsylvania, Indiana and Michigan could be key.
NAM President Jerry Jasinowski said he would be looking more closely at the policies and voting history of Massachusetts Sen. John Kerry, who has emerged as the front-runner in the race for the Democratic presidential nomination.
According to his voting record, Kerry has supported NAM on only one of 16 issues, Jasinowski said.
Copyright 2004, Reuters News Service
By Jonathan Weisman
Washington Post Staff Writer
Wednesday, February 11, 2004; Page A06
Democrats from Capitol Hill to the presidential campaign trail lit into President Bush's chief economist yesterday for his laudatory statements on the movement of U.S. jobs abroad, seizing on the comments to paint Bush as out of touch with struggling workers.
"They've delivered a double blow to America's workers, 3 million jobs destroyed on their watch, and now they want to export more of our jobs overseas," said John F. Kerry, the Massachusetts senator and front-runner for the Democratic presidential nomination. "What in the world are they thinking?"
Rep. Donald Manzullo (R-Ill.) called for the resignation of N. Gregory Mankiw, the chairman of the White House Council of Economic Advisers and a prominent Harvard University economist. Manzullo said industrial state Republicans are furious.
"I know the president cannot believe what this man has said," Manzullo said. "He ought to walk away, and return to his ivy-covered office at Harvard."
As Mankiw released the annual Economic Report of the President, he said Monday that the "offshoring" of U.S. service jobs is only "the latest manifestation of the gains from trade that economists have talked about" for centuries.
"Outsourcing is just a new way of doing international trade," Mankiw told reporters. "More things are tradable than were tradable in the past and that's a good thing."
The report itself, under Bush's signature, offered similarly encouraging words, asserting that "when a good or service is produced more cheaply abroad, it makes more sense to import it than make or provide it domestically." It also said growing competition with China has not been an important factor in U.S. manufacturing job losses.
The White House tried to take the political sting out of the issue yesterday, emphasizing the funding Bush has sought for job re-training, community colleges and "personal re-employment accounts," which laid-off workers could use any way they see fit to find a new job.
"The president's view is that American workers are the best workers in the world, and he is committed to free and fair trade. He is committed to a level playing field," said White House spokeswoman Claire Buchan, "and believes we have to prepare workers for the economy of the future."
Bush's 2005 budget request does increase spending on his new proposals, as well as job training under the Trade Adjustment Assistance Act. But other programs face cuts or elimination, such as one-stop career centers, youth opportunity grants and migrant worker training.
The statements on "offshoring" only fueled attacks on Bush's job-creation record from Democrats who have made economic nationalism a centerpiece of the campaign season. One Senate Democratic aide promised the words would become staples for every Democratic campaign this fall. Senate Minority Leader Thomas A. Daschle (D-S.D.) opened a meeting with reporters by offering his critique of Mankiw's economics.
"This is actually now the position of the White House that they support outsourcing of jobs, jobs going abroad, saying that that's good for our country," he said. "Well, you tell that to the 9 million Americans who are out of work."
Mankiw faced the criticism in person when he appeared before the congressional Joint Economic Committee to present the economic report. Rep. Fortney "Pete" Stark (Calif.), the panel's ranking Democrat, told him, "Bush stands idly by as jobs continue to take flight from the U.S., and now we know why. It's part of his economic plan."
Mankiw and the president's report contend that the U.S. economy ultimately will benefit when the production of goods and services finds its way to the nation that can render them most efficiently.
Mankiw acknowledged the pain that trade-related dislocations can have for individuals.
"We need to help workers find jobs and make sure to create jobs here," he said. "But we shouldn't sort of retreat from the basic principles of free trade."
WHouse stands by adviser despite stance on exporting jobs
Reuters, 02.11.04, 12:17 PM ET
By Adam Entous
WASHINGTON, Feb 11 (Reuters) - The White House on Wednesday stood by a top economic adviser who critics have accused of encouraging companies to export jobs overseas, a factor in heavy job losses during George W. Bush's presidency.
At issue is the practice of a growing number of U.S. companies to move all or a portion of their operations to places like Mexico, India and China, where labor costs are lower and goods can be produced more cheaply, in order to improve profits.
With political concern about factory job losses heating up ahead of the November presidential election, White House spokesman Scott McClellan said "any job loss is regrettable."
He brushed aside suggestions that Gregory Mankiw, who chairs the White House Council of Economic Advisers, be fired for pointing out the potential economic merits of "outsourcing" jobs overseas.
"We certainly don't want to do anything that would undermine free trade," McClellan said.
Mankiw sparked an uproar earlier this week with comments that appeared to laud "outsourcing" by U.S. companies overseas.
"Outsourcing is a growing phenomenon, but it's something that we should realize is probably a plus for the economy in the long run," he said.
Democrats seized on Mankiw's comments, saying it was evidence that the Bush White House was insensitive to the plight of out-of-work Americans.
At least one lawmaker has even suggested that Mankiw resign over the flap.
"That's kind of laughable," White House spokesman Scott McClellan said. "Our economic team is doing a great job helping the president work to strengthen our economy even more."
McClellan said Bush's policies were creating new jobs in the United States. "Certainly free and fair trade is important to strengthening our economy even more and expanding job growth here at home," he added.
In addition to Democrats, some U.S. business leaders have criticized Mankiw.
A traditional base of support for the Republican administration, the National Association of Manufacturers accused the White House of being "insensitive" to unfair trade and complained that not enough was being done to help American manufacturers.
Nearly 2.8 million factory jobs have been lost since Bush took office and the issue looms large ahead of November's vote, where victory in rust-belt states like Ohio, Illinois, Pennsylvania, Indiana and Michigan could be key.
NAM President Jerry Jasinowski said he would be looking more closely at the policies and voting history of Massachusetts Sen. John Kerry, who has emerged as the front-runner in the race for the Democratic presidential nomination.
According to his voting record, Kerry has supported NAM on only one of 16 issues, Jasinowski said.
Copyright 2004, Reuters News Service