Friday, August 25, 2006

Ouch! The Truth Hurts.

It looks like, contrary to popular belief, outsourcing increases domestic wages:

Take that, Lou Dobbs. Despite much handwringing and political posturing, the surge of job outsourcing, by increasing productivity, has actually helped raise real wages for low-skilled U.S. workers, according to two Princeton University economists.

Also, it looks like most of the burden of the corporate income tax gets passed on to employees:

...domestic labor bears slightly more than 70 percent of the burden of the corporate income tax.

Via Jane Galt and Greg Mankiw

Now, do you think any politicians will run a campaign on a platform of letting companies outsource and reducing corporate income taxes? Given that it's an election year, I doubt it.