There’s some confusion and seeming importance being attributed to these two terms in this election cycle. And President Obama appears to be leading the charge, completely overlooking the fact that they are different but still using the terms interchangeably. Let’s shed some light on the matter, shall we?
OUTSOURCING: This is when a company contracts a 3rd party to do work for them. A good example would be Joe’s Computer Shop (in OH) uses Ben’s Accounting (in ND) to keep their books.
OFFSHORING: This is when a company moves its business operations to another country, period. A good example of this are the the mills/factories that have shut down in the U.S. south and have set-up shop in China.
President Obama thinks these 2 terms are interchangeable and they mean the same thing:
Romney advisor Ed Gillespie has tried to clear up the confusion regarding the two terms on CNN's State of the Union, and accused Obama himself of outsourcing. But here’s an example of Obama offshoring, which is a worse offense. Offshoring takes jobs AWAY from American’s and Obama is guilty of this, if not moreso, than ’s Bain Capital. In fact, FactCheck.org has found no evidence that Bain Capital, while run by Mitt Romney, is guilty of offshoring as Obama claims in his attack ads.
While it’s a confusing subject – and you can even get into offshore outsourcing – both practices have their benefits; one moreso on the production of domestic jobs while the other benefits the consumer. The main point this election year, however, is who is telling the truth and who isn’t. Who is better equipped to turn our economy around and who isn’t. Who is better equipped to lower the unemployment rate thru their policies and who isn’t. One of these who’s has been in office for 3.5 years and has caused the aforementioned problems. The other who has been in the real world and is successful in all facets of the job market. Which who will you be pulling the lever for in Nov?