[Congressional Record Volume 150, Number 42 (Tuesday, March 30, 2004)]
[House]
[Page H1716]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       OUTSOURCING AND FREE TRADE

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Texas (Mr. Hensarling) is recognized for 5 minutes.
  Mr. HENSARLING. Mr. Speaker, recently there has been a great deal of 
discussion, angst and some protectionist legislation concerning the so-
called outsourcing of American jobs to foreign countries. In fact, 
companies choosing to purchase services abroad have been termed 
``Benedict Arnold'' companies by some.
  But despite all the inflammatory language and distorted facts, the 
truth is that outsourcing is only one side of a two-way street known as 
free trade. Almost one-third of our economy is dependent upon that two-
way street. Thus, we should examine the little-noticed other side of 
the street called insourcing.
  Data from the Commerce Department shows that during 2003, the U.S. 
posted a $53 billion surplus, surplus, in trade and private services 
with the rest of the world. We outsourced $77 billion in services 
overseas, but foreigners turned around and insourced $130 billion of 
services from the U.S. In other words, foreigners demand more of our 
services than we demand of theirs.
  Unfortunately, Americans are presently hearing only one side of the 
outsourcing story. They only hear about the jobs that are going out of 
the U.S. They do not hear anything about the jobs coming into the U.S.
  According to the Treasury Department, insourcing accounted for 6.4 
million jobs nationwide in the most recent survey; and these insource 
jobs paid 16\1/2\ percent more than the average domestic job. Even 
though many foreign workers work for less, jobs are insourced into the 
U.S. because our workers tend to be better educated. They tend to have 
better skills. They tend to be more productive. We can compete 
internationally.
  If you want to get a better idea of the kind of insourcing coming to 
America, let us just take a look at the automobile industry. Honda is 
hiring 2,000 new Americans in Alabama to build SUVs, and Nissan will 
add more than 2,000 jobs by expanding their plants in Tennessee and 
Mississippi. Toyota will add 2,700 jobs in my home State of Texas in 
the next 2 years. In fact, Mr. Speaker, foreign corporations now employ 
almost half a million workers in my home State. Nearly one in 10 jobs 
in the U.S. is directly linked to the export of U.S. goods and 
services.
  Now, protectionist anti-outsourcing legislation unfortunately 
threatens each and every one of these jobs. If we do not permit the 
outsourcing of jobs overseas, other nations will not permit the 
insourcing of jobs into the U.S. It is free trade that creates more job 
opportunities for the unemployed, increases their wages and improves 
the standard of living for American workers. Free trade also delivers a 
greater choice of goods and services to our consumers at lower prices. 
That means American families get better products using less of their 
paycheck.
  Competition has always helped the consumer. It does not matter if 
that competition comes from Canada or Kentucky. Over the past few 
years, prices have dropped for a wide array of goods and services that 
face foreign competition. For example, TVs cost 10 percent less; 
computers cost 25 percent less. Yet we pay a lot more for services that 
do not receive foreign competition, goods and services, for example, 
college tuition, prescription drug goods, and cable TV service.
  Those who care about creating jobs and reducing unemployment here at 
home should stop fighting free trade and its outsourcing component and 
start fighting the root cause of job flight overseas, mainly too many 
taxes, too many regulations, and too many frivolous lawsuits.
  The Small Business Administration found in the year 2000 that 
Americans spent $843 billion complying with Federal regulations. Too 
many mind-numbing regulations send jobs offshore.
  Mr. Speaker, the cost of litigation now accounts for one-third of the 
price of the aluminum ladder. It doubles the price of a football 
helmet, and it adds $500 to the sticker of a new car. Too much 
litigation sends jobs offshore.
  The United States has a higher corporate tax burden than any 
industrialized nation with the exception of Japan. This even includes 
several of the former Soviet bloc countries. Too much taxation sends 
jobs offshore.
  Mr. Speaker, beyond the obvious economic benefit of free trade, 
fundamentally we must recognize that nations do not trade with nations; 
people trade with people. Every American citizen and every American 
company should have the right to determine the origin of the goods and 
services they want to purchase.
  With the exception of national security considerations, it should not 
be the role of the Federal Government to tell consumers or companies 
where they buy their goods. Besides our financial well-being, it is our 
fundamental economic liberty that is at stake.

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