Press Release Author: Abbey Grace Yap / US Contact Point
Press Release Summary: With more and more industries venturing into outsourcing services to eastern countries like China and India, presidential candidates Barack Obama and John McCain are looking for ways to encourage business to ditch outsourcing and promote on-shore hiring.
Press Release Body: Presidential candidates Barack Obama and John McCain have both take their stand on the subject of outsourcing in their respective campaigns.
Barack Obama suggests restructuring incentives in order to encourage more companies to keep jobs on-shore and generating more job openings in new industries that cannot be outsourced. On the other hand, John McCain advocates giving massive training programs and other forms of public assistance during the training period.
The important thing to take note of now, is understanding the different kinds of jobs that cannot be outsourced. This will further help in understanding Obama's proposal and seeing the long-term effect of McCain's proposal.
Jobs based on data and manufacturing are not the type of services that cannot be outsourced. Data is pretty simple to send to and from a service contractor to an outsourcing company abroad through the Internet. The same goes with the manufacturing business, products can be sent abroad and sent back into the country after assembly.
With this in mind, three basic jobs are left: 1. Infrastructure building / general construction 2. Government positions 3. Certain personal and professional services
Now that we're able to determine which jobs are outsource-able and which ones aren't, we can differentiate McCain's and Obama's approach on how to promote on-shoring.
McCain's policy is geared towards getting information-based jobs that require intensive training. On the other hand, Obama's plan is quite the opposite of that of McCain's. Obama believes that by revising tax incentives, more jobs will be able to return and remain onshore. Obama wants to invest more on infrastructure, believing that this industry does not require much education and retraining.
With McCain's approach, there is not much opportunity opened for on-shore employment because the plan does not make a significant difference to today's offshoring. This will be creating job openings with higher wages which corporate investors can get offshore for a cheaper price.
Obama's take on offshoring appears to be more favorable for the working population because with the incentives of offshoring taken out of the picture, more jobs may be kept open on-shore. Plus, opening labor-intensive jobs that cannot be outsourced can give employment opportunities to workers who have been affected by the recent housing crisis.