Business Week: Productivity is the Real Culprit for Lost Jobs

Click here to read an interesting analysis of why productivity, and not offshoring per se, is the culprit for US job losses. While I would agree that the real aim of American businesses is to increase productivity, and therefore lower costs and raise profits, I think offshoring is still a problem the way it is bring done, and it deserves our attention.

Nobody seems to want to offer a solution to the negative side-effects of offshoring. Why? Because they don't have one. Honestly, I don't know anyone who argues that productivity-based growth is the only way the US economy will grow in the future. At the same time, how much this alleged economic cure called "offshoring" can we stand?

There will be political hell to pay for too much of a "good thing." Mark my words. My solution is pressure more foreign companies to put down business roots in the US. Open the floodgate and provide even greater incentives for international companies to become players in the US market. Why not? Isn't that what globalization is all about; that is building global industries that encourages cross-investment by firms from various countries?

So, let's step up that process and provide the investment climate international companies need to be successful in the US market. Let's provide sucha powerful incentive for Chinese and Indian companies to invest in the US that can could not possibly say no.