DRNO - Daily Research News
News Article no. 3048
Published April 8 2004

 

 

 

Strong Opposition to Outsourcing

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

 

 
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