Do free trade, free labor, and free capital harm the U.S. economy?
Certainly not! Economic freedom is necessary for economic growth, new jobs, and higher living standards. A study conducted for the 2004 Index of Economic Freedom confirms a strong, positive relationship between economic freedom and per capita GDP. Countries that adopt policies antithetical to economic freedom, including trying to protect jobs of a few from outsourcing, tend to retard economic growth, which leads to fewer jobs. Is a job outsourced, a job lost? Not at all; outsourcing means efficiency. Outsourcing is a means of getting more final output with lower cost inputs, which leads to lower prices for all U.S. firms and families. Lower prices lead directly to higher standards of living and more jobs in a growing economy. Outsourcing is a one-way street, right? Wrong! Outsourcing works both ways. The number of jobs coming from other countries to the U.S. (jobs “insourced”) is growing at a faster rate than jobs lost overseas. According to the Organization for International Investmen
