Sourcing Freedom
Wednesday, March 31st, 2004The word “outsourcing” is on everbody’s lips. But how many know what it means?
It’s a business buzzword. When a company hires out for things normally handled in-house, that’s “oursourcing.” It needn’t be out of state, or country. Quite a bit of it is to businesses around the corner. In all of the brouhaha over outsourcing, it’s rarely mentioned that politicians have been trying to meet today’s challenge. Trouble is, they’re only making things worse.
Outsourcing frightens some. Employees don’t like competing with strangers. Politicians don’t want to lose tax revenue to other districts. So states and municipalities fight back, making special deals with the biggest companies. Tax deals. Infrastructure deals. Subsidies. They think of it as a kind of investment! But it’s money thrown away.
Washington state recently spent over $3 billion trying to keep Boeing nearby, a new record. But in a sense that’s not the biggest figure. State and municipal governments around the country spend at least $40 billion per year to keep businesses local. That’s loco. And no way to encourage good business.
The best thing governments can do is not try milking businesses for all they’re worth. Be efficient. Establish a fair playing field. And give up showing preferences for some, which makes other businesses and individuals pay all the more to keep government chugging along.
In politics we need to think about sourcing, too. The kind that gets us back to the source of our prosperity: freedom.
This is Common Sense. I’m Paul Jacob.










