As an industrialist, I’ve taken an interest in President Barack Obama’s insourcing kick which has occurred over the past few weeks, highlighted by his weekly radio and Internet address on January 14 and a speech delivered in the East Room of the White House a few days earlier (I’m certain that he’ll talk about it during this week’s State of the Union Address, too). By "insourcing," the President refers to a reversal of the outsourcing trend by American manufacturers. Some of them, though few in number, are bringing jobs back to the United States.
Obama, of course, has been quick to take credit for the insourcing, citing his economic policies while ignoring the true reasons behind the shift in these scant few jobs. One reason is capitalistic decision-making based on a wide range of criteria including the continued collapse of the European Union (which causes entrepreneurs to abandon that market and return to a focus on American consumers). Another reason is the ongoing productivity lapses in developing nations such as China which frustrate expansion and retention of overseas factories.
It should be noted that President Obama could be responsible for the some of the insourcing due to one of his tactics. Our exports have become more attractive to foreign nations thanks to the continued weakening of the U.S. dollar, as the unaccountable public-private partnership known as the Federal Reserve caters to Washington’s extravagant spending by printing more money at will, out of the ether.
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Bob Confer (photo)