As Democrats continue to bash Mitt Romney for his purported record on outsourcing jobs, the Republican Party has launched a counteroffensive, exposing President Obama’s 2009 economic stimulus law for doling out millions of dollars to foreign companies or subsidizing U.S. firms that expanded operations abroad or purchased foreign goods.
The Obama campaign has been vocal in its dissent of job outsourcing, using Romney’s past business endeavors as an indication of his performance on domestic job-creation. “I want to stop giving tax breaks to companies that ship jobs and factories overseas,” the President asserted Tuesday during a speech in Cedar Rapids, Iowa. “As long as I’m president, I will keep fighting to make sure jobs are located here in the United States of America.”
However, Obama’s $787-billion American Recovery and Reinvestment Act funneled millions of federal dollars to companies that shipped American jobs overseas. Take, for example, North Carolina-based LED manufacturer Cree Inc., which reaped $39 million through a stimulus-funded tax credit program in January 2010. In November 2009, the company built a manufacturing plant in Huizhou City, China, which is the harbor for more than half of the company’s employees.
While Cree is a U.S.-based company, chairman and CEO Chuck Swoboda says that “Cree management never runs this company as a U.S. company. We consider Cree to be a global company with local wisdoms.” And the firm’s plans to further expand into foreign countries are only just beginning, asserts Swoboda. “We will continue to invest here for both human talent and the most state-of-the-art technologies,” he said, adding, “We have committed that in the coming 3-5 years, we will continue to expand our operation in Huizhou.”
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Photo: An employee answers calls at a call center in Bangalore, India, Aug. 29, 2005: AP Images