Mises Wire

Restrictions on Outsourcing?

Restrictions on Outsourcing?
Any possible argument that can be made to justify restrictions on outsourcing can be seen to apply even more strongly to cases in which any technological or other advance reduces or eliminates the requirements for a particular kind of labor. If the manufacture of widgets requires the employment of labor specialties A, B and C, then the outsourcing of labor specialty C for cost reasons may be just an intermediate step on the way to entirely eliminating the requirement for C at all. The logic that would allow restrictions on either outsourcing or specialty elimination would result in the retention of the coal-feeding firemen as diesel locomotives come into use.

 

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