An interesting observation from Bruce Bartlett:

…Ironically, much of the move toward offshoring is the result of ill-considered efforts to keep software jobs in the United States. Previously, companies had brought Indian programmers to this country to do their work under a program established in 1990. It provided these foreign workers with H-1B visas that allowed them to work here temporarily. But under pressure to save such jobs for the native-born, the number of visas allowed under this program was reduced from 195,000 to 65,000 in October. So now, instead of having Indian workers come here, where they spent much of their earnings, companies are contracting with them to work in India, which is where they now spend their earnings…

But wait it gets worse:

…Rather than admit that they were wrong in the first place, the same people who demanded restrictions on foreign workers are trying to get new limits placed on outsourcing, as well.

Or to paraphrase Von Mises’ axiom: interventions (unless repealed) bring on more interventions until full-scale socialism is reached. Comments Paul Blair “…and once the politicians ban outsourcing, that will accelerate companies moving their plants abroad, and if they manage to ban that, then capital will move to foreign companies. And if you want to see a real economic disaster, just wait till you see what happens if they try to stop capital flight.”

Recommended Reading:

Restrictions on “H-1B” Visas Punish Ability and Trample the Rights of Employer and Employee by Robert W. Tracinski
Any restrictions on immigration — large or small — trample the rights of both employers and job-seeking immigrants. The irrational premise behind our nation’s immigration laws is that a native-born American has a “right” to a particular job, not because he has earned it, but because he was born here.

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