Daily Research News Online no. 3048 - Strong Opposition to Outsourcing

Strong Opposition to Outsourcing

April 8 2004

Outsourcing of US jobs to countries like China, India and Mexico where labour costs are much lower remains very unpopular, according to the latest Harris Poll(r). Only 16% of Americans agree with President Bush's economic advisor's comment that it is 'good for the US economy'.

A majority disagree, whether Republican, Democrat or independent, and a 69% to 17% majority overall would support a 'special tax' on 'companies that use less expensive foreign workers to replace American workers'.

Most Americans are aware of the dilemma and difficulties involved, however: a 49% to 38% plurality agrees that 'if companies get work done less expensively abroad, that reduces their cost which means American consumers pay lower prices' and a 45% to 35% plurality agrees that 'if we prevent American companies from getting work done wherever it is least expensive, that makes it harder for them to compete with foreign companies'. A 71% to 13% majority agree that 'the long term success of the US economy requires that we have a highly educated workforce who do highly skilled jobs here which cannot easily be done abroad'.

Asked specifically about four of the most common routes for outsourcing, the biggest majorities frown upon outsourcing of IT, data processing and telephone center work to India (c.72% think this is a bad idea, vs 16% who don't). Smaller but still substantial majorities think use of Chinese or Mexican workers to manufacture things previously made in the US is a bad idea (by 64% to 21% and 59% to 24% respectively). Presumably, the difference has to do with one or more of geographical proximity (ie favouring Mexico), novelty (outsourcing to India is very high profile at present) and a greater acceptance that manufacturing costs are going to be cheaper overseas than there is for services.

Comparing policies for the (likely) candidates in the election, almost half those questioned are unsure which has the better policy on this issue, or say 'neither'. John Kerry has a modest advantage over President Bush (by 32% to 24%), but it is not as big a difference as many democrats would have expected or hoped given the President's recent embarrassment on the issue.

IS OUTSOURCING OF LESS EXPENSIVE JOBS GOOD OR BAD FOR THE ECONOMY?
"A well-known economist said recently that on balance it is good for the U.S. economy when American companies use less expensive workers in countries like China and India to do work previously done at a higher cost in this country. Do you agree or disagree?"

Base: All Adults
		PARTY I.D.
	TOTAL	Republican	Democrat	Independent
	0%	0%	0%	0%
Agree	16	25	8	17
Disagree	68	58	79	70
Not sure	16	17	13	13

REACTIONS TO FOUR STATEMENTS ABOUT U.S. LABOR FORCE AND OUTSOURCING
"Do you agree or disagree . . . ?"

Base: All Adults
	Agree	Disagree	Not Sure

The long-term success of the U.S. economy requires that we have a highly educated workforce who do highly skilled jobs here which cannot easily be done abroad	71	13	17
Companies that use less expensive workers to replace American workers should pay a special tax on this work	69	17	14
If companies get work done less expensively abroad, that reduces their costs which means American consumers pay lower prices	49	38	13
If we prevent American companies from getting work done wherever it is less expensive, that makes it harder for them to compete with foreign companies	45	35	20
Note: Percentages may not add up exactly due to rounding.

ATTITUDES TO FOUR THINGS SOME U.S. COMPANIES DO
"How do you feel about American companies doing each of the following? On balance, do you think it is good or bad to . . .?"

Base: All Adults
	Bad	Neither Good nor Bad	Good	Not Sure

Use India's information technology and data processing staff to replace American staff here	73	15	5	7
Use Indian workers in telephone centers to replace American workers in telephone call centers here	72	16	5	7
Use Chinese workers to manufacture things previously made here	64	21	7	9
Use Mexican workers to manufacture things previously manufactured here	59	24	9	8
Note: Percentages may not add up exactly due to rounding.

WHO HAS BETTER POLICY ON OUTSOURCING OF JOBS - BUSH OR KERRY?
"Who do you think is likely to have the better policy on the issue of American companies using less expensive workers in other countries like China and India - President George Bush or Senator John Kerry, if he is the Democratic candidate?"

Base: All Adults
		PARTY I.D.
	TOTAL	Republican	Democrat	Independent
	0%	0%	0%	0%
President George Bush	24	53	6	18
Senator John Kerry	32	8	58	34
Neither	18	20	13	24
Not sure	26	19	23	24

The Harris Poll(r) was conducted online by Harris Interactive within the US between March 18 and 29, 2004 among a nationwide cross section of 3,698 adults. 'Propensity score' weighting was used to adjust for respondents' propensity to be online.

The company's Web site is at www.harrisinteractive.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.