Reader Lisa points out an article on US States tackling outsourcing. Essentially various states are responding to the outsourcing "threat" by prohibiting it. The article outlines both sides of the debate (Fox being fair and balanced - who would have thought?). On the protectionist side, it is about keeping middle class jobs protected from the Asian menace, because Asian labour can do the same jobs cheaper and these people went to college and the best thing to do when your job is threatened is ask the Government to help. Oh, and it is better to spend more Government money doing these jobs in America, because even though budgets are tight it is a far, far better thing to waste taxpayer money in America and on Americans.

On the other hand there's the facts. Believe it or not, outsourcing or offshoring has been happening for 300 years. In fact America itself was one of the first beneficiaries of the process. Nowadays it is helping many previously poor places like China and India overcome poverty, creating a wealthier and better world and even leading to demand for American goods.

Here's some more, all from the article: Federal Reserve Chairman Alan Greenspan has criticized efforts to limit offshoring, saying they will reduce American living standards and not help American unemployment. Boosting math and science programs and technical skills of Americans is the key...

The Computer Systems Policy Project notes that while the Bureau of Labor Statistics predicts that the United States will have 165.3 million jobs by 2012, only 3.3 million of them, according to Forrester Research, will be outsourced. [that's right, only 2% of all jobs will be outsourced]

Despite the focus on jobs left, the Organization for International Investment this month released a list of the top 10 states that have been most successful in attracting "insourced" jobs — jobs supported by U.S. subsidiaries of companies headquartered abroad. So the process works both ways. Don't hear too much about that, do you?

The blogosphere's best on this is Daniel Drezner. He has an excellent article on outsourcing which is worth reading in full for a broader discussion of the issues. He has more here and throughout his site.

If I were an American taxpayer, and thankfully I'm not, I would be wondering how these Governors can get away with announcing an intention to waste money that could be better used for schools, cops, nurses, transport or one hundred other uses. It is rare when a politician tells you they intend to overspend. It's a pretty clear warning that something is amiss.