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January 29, 2005 Cold, Naked and Hungry. (What do you get from trade barriers?) |
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There is no logical reason to
focus on outsourcing across national boarders any more than
outsourcing of any other kind. Actually, the word outsourcing can be
misleading, because people think there is something that
distinguishes outsourcing from trade. Outsourcing is simply trade in
services. Anytime you hire someone to provide a service you are
outsourcing. If you go to a barber, a restaurant, lawyer, etc., you
are outsourcing.
Try to imagine your life with no
trade (including outsourcing). In other words, anything you pay for,
you now have to do for yourself. What would your clothes be like?
What kind of food would you eat? Do you think you would have much of
a house? You can forget about electricity or toilets. Your only
running water would be in a stream. If you want heat, start rubbing
those sticks together.
Trade creates wealth. That
includes trade in services (outsourcing). Those who want to throw up
barriers, including barriers to outsourcing, need to realize that
while they may think that a particular barrier benefits them
personally, it means that the world as a whole is worse off. Since
the world is not likely to restrict its trade barriers to those that
benefit them personally, they may want to think again before
advocating barriers to free trade. Trade is what separates us form a
life in which we are all cold, naked and hungry.
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