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Idea of the Day: The Toll of Offshoring Work

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idea light bulbThe global economy is becoming a more integrated and competitive neighborhood. Driven by new investments and the jobs that come with them, the expansion of the global economy into coordinated production and supply chains brings both benefits and opportunities. It also raises questions about the source and location of future jobs and growth.

Offshoring, the practice of moving production to foreign locales while continuing to sell goods to the U.S. market, is a pervasive feature of the U.S. economy today. Market pressures drive businesses to seek reduced production costs, often in places where standards of living and protections for workers and the environment are more lax than in the United States. Moreover, an ineffective tax structure further encourages the relocation of assets and production to foreign countries with lower costs. Policies such as a tax credit that reduces the costs a company incurs when it reshores jobs back to the United States would help slow this trend. In addition, the financial incentive to bring production back would help workers here at home, where production loss has led to broad downward pressure on wages across the economy, even in industries relatively insulated from international trade competition.

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To speak with our experts on this topic, please contact:

Print: Liz Bartolomeo (poverty, health care)
202.481.8151 or

Print: Tom Caiazza (foreign policy, energy and environment, LGBT issues, gun-violence prevention)
202.481.7141 or

Print: Allison Preiss (economy, education)
202.478.6331 or

Print: Tanya Arditi (immigration, Progress 2050, race issues, demographics, criminal justice, Legal Progress)
202.741.6258 or

Print: Chelsea Kiene (women's issues,, faith)
202.478.5328 or

Print: Beatriz Lopez (Center for American Progress Action Fund)
202.741.6255 or

Spanish-language and ethnic media: Rafael Medina
202.478.5313 or

TV: Rachel Rosen
202.483.2675 or

Radio: Sally Tucker
202.481.8103 or


This is part of a regular column: Idea of the Day

For more from the same column, click here