From today’s Daily News:
President Obama Saturday announced $10 billion in trade deals with India that will create 50,000 U.S. jobs.
“The United States sees Asia, especially India, as the market of the future,” Obama said at a gathering of business leaders in Mumbai. “We don’t simply welcome your rise … we ardently support it.”
…Still, he acknowledged many of his fellow countrymen don’t see India as a job creator.
“There still exists a caricature of India as a land of call centers and back offices that cost American jobs. That’s a real perception,” he said.
…”For America, this is a jobs strategy,” he said. “The goods we sell in this country currently support tens of thousands of manufacturing jobs across the United States.”
The deals, for instance, include Boeing building aircraft for the country and General Electric selling it jet engines.
Obama wants to assert that trade with India creates jobs for Americans. OK, it’s nice that we can still build aircraft for export. But the fact remains that call centers and back-office functions, as well as activities requiring actual thought, like legal and medical reviews, are outsourced to Indian firms on a far larger scale.
And the 50,000 jobs (or even 100,000, as some sources suggest) associated with the specific trade deals with India are far less than we need every month just to stay ahead of population growth.
And one day, probably sooner rather than later, the economics will come together to enable India to build aircraft and engines for themselves, rather than importing them.
Does Obama simply not understand what’s happening?
Or are we so desperate that any export deal is to be hailed as a major achievement?