Greenspan warns against fighting outsourcing
Federal Reserve chairman Alan Greenspan said that efforts to stem the tide of overseas outsourcing could damage the US economy instead of help protect American workers.
Mar 17, 2004
Federal Reserve chairman Alan Greenspan said that efforts to stem the tide of overseas outsourcing could damage the US economy instead of help protect American workers.
Greenspan detailed his views on the politically charged topic at Boston College's Finance Conference 2004, where he was awarded an honorary degree by the school. Measures such as the US Workers Protection Act might do more harm than good, he said.
"In response to these strains and the dislocations [outsourcing could] cause, a new round of protectionist steps is being proposed," Greenspan said. "These alleged cures would make matters worse rather than better. They would do little to create jobs; and if foreigners were to retaliate, we would surely lose jobs."
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Greenspan detailed his views on the politically charged topic at Boston College's Finance Conference 2004, where he was awarded an honorary degree by the school. Measures such as the US Workers Protection Act might do more harm than good, he said.
"In response to these strains and the dislocations [outsourcing could] cause, a new round of protectionist steps is being proposed," Greenspan said. "These alleged cures would make matters worse rather than better. They would do little to create jobs; and if foreigners were to retaliate, we would surely lose jobs."
Full text of the article