Post by leverlover on Mar 4, 2008 19:58:24 GMT -4
I detest importers.
www.missoulian.com/articles/2004/03/14/opinion/opinion1.txt
The "outsourcing" of U.S. jobs to places like India has become a hot topic, garnering a lot of attention in the news media and figuring prominently in the early presidential election campaign. The issue really flared recently after White House chief economist Gregory Mankiw said exporting jobs is just another form of international trade and "is probably a plus for the economy in the long-run."
That's not an especially savvy way of putting it, but he's probably right. To understand why, let's cast our attention to a small and early example of job outsourcing - one that strikes particularly close to home for many Montanans: fly tying.
Flies, of course, are the edible-looking things fly fishermen tie on the end of a line to catch fish - in these parts, mostly trout.
Fly-tying is a skill-based, labor-intensive endeavor that involves wrapping fur, feathers and other materials around a tiny hook to produce something that resembles an insect or minnow. The process defies automation. Flies must be tied one at a time by hand, each one following a particular design. A well-tied fly is a piece of art, as well as utilitarian device.
Up until, say, the early 1970s, most of the artificial flies used for fishing in America were tied in the United States. A generation ago, we recall walking into Dan Bailey's Fly Shop in Livingston to see a whole room full of workers tying flies. More commonly, the flies fishermen bought in sporting goods stores were tied by independent contractors working out of their homes.
People still make a living tying flies today, but a large percentage of flies sold in the United States are tied overseas in places like Sri Lanka, Thailand, China and, yes, India. Great improvements in the quality of materials and workmanship have contributed to an easing of the traditional aversion fly fishermen had to imported flies. Better fishing shops clearly identify the origins of imported flies, but an awful lot of fishermen undoubtedly buy their flies without knowing or caring who tied them or where.
It takes instruction and years of experience before most people can tie flies of commercial quality. What's more, with bargain flies retailing for less than $1 apiece and very few flies selling for more than $2 apiece (wholesaling for perhaps half that), it's the rare American craftsman who can make a livable wage tying flies - especially when you factor in the cost of materials, such as hooks, thread, feathers and fur. It's more economical to hire low-wage workers in other countries to tie flies and import them.
According to the U.S. Commerce Department's International Trade Administration, the United States last year imported nearly 137 million flies and "artificial baits," which also includes fishing lures. That translates into thousands of jobs shipped overseas. And that's bad for the United States, right? Not really.
At the same time that fly-tying jobs were outsourced to Asia and elsewhere, the American fishing industry blossomed. According to the American Sportfishing Association, anglers today spend $41.5 billion in retails sales and generate $116 billion in overall economic activity annually - making fishing the equivalent of 32nd on the Fortune 500 list of America's largest companies. Nearly 1.07 million Americans find work in fishing-related jobs. The ASA says fishing-related businesses support more than 7,000 jobs in Montana, accounting for over $136 million in wages and a total economic impact of $544 million annually.
Fewer Montanans may be working as commercial fly tiers than a generation ago, but more are working as guides, boat-builders, rod makers, sales clerks, hoteliers, outdoor writers, biologists and such - all jobs that pay more than most people ever could earn tying flies.
What's more, if you were to compare today's average fisherman's fly box with that of his grandfather's, what you'd see is a much larger and more diverse selection of flies in today's box. That and a whole lot more equipment and more expensive tackle in general. Lower-cost imported flies make it affordable to stock up on more flies. Money not spent on flies very likely gets spent on more expensive rods or clothing or services. And all of that generally translates into greater fishing success, greater satisfaction and even greater demand for goods and services.
And now look: Finding it tough to compete with imports on the basis of price, American fly tiers are finding ways to compete on the basis of quality and creativity. Many tiers carve out a niche by specializing in flies especially suited for local waters. Others come up with innovative new designs that catch more fish - or at least capture fishermen's imagination. Walk into any upscale fishing shop in America and you'll find such value-added, locally tied flies selling for a premium.
Meanwhile, halfway around the globe, people are buying food, shelter and clothing with the money they earn tying the run-of-the-mill flies that so many American fishermen use. Their productivity contributes to other economic activity that, as it spreads across the vast array of manufacturing and service jobs we might consider outsourced from the United States, ultimately, leads to the purchase of machines, grain, medicine, computer software, music CDs and myriad other products created by workers in the United States.
They sell us stuff they make cheaper or better, and we sell them stuff that we make cheaper or better. Over time, we all fare better than we would with self-sufficient economies. That's the lure of free trade.
www.missoulian.com/articles/2004/03/14/opinion/opinion1.txt
The "outsourcing" of U.S. jobs to places like India has become a hot topic, garnering a lot of attention in the news media and figuring prominently in the early presidential election campaign. The issue really flared recently after White House chief economist Gregory Mankiw said exporting jobs is just another form of international trade and "is probably a plus for the economy in the long-run."
That's not an especially savvy way of putting it, but he's probably right. To understand why, let's cast our attention to a small and early example of job outsourcing - one that strikes particularly close to home for many Montanans: fly tying.
Flies, of course, are the edible-looking things fly fishermen tie on the end of a line to catch fish - in these parts, mostly trout.
Fly-tying is a skill-based, labor-intensive endeavor that involves wrapping fur, feathers and other materials around a tiny hook to produce something that resembles an insect or minnow. The process defies automation. Flies must be tied one at a time by hand, each one following a particular design. A well-tied fly is a piece of art, as well as utilitarian device.
Up until, say, the early 1970s, most of the artificial flies used for fishing in America were tied in the United States. A generation ago, we recall walking into Dan Bailey's Fly Shop in Livingston to see a whole room full of workers tying flies. More commonly, the flies fishermen bought in sporting goods stores were tied by independent contractors working out of their homes.
People still make a living tying flies today, but a large percentage of flies sold in the United States are tied overseas in places like Sri Lanka, Thailand, China and, yes, India. Great improvements in the quality of materials and workmanship have contributed to an easing of the traditional aversion fly fishermen had to imported flies. Better fishing shops clearly identify the origins of imported flies, but an awful lot of fishermen undoubtedly buy their flies without knowing or caring who tied them or where.
It takes instruction and years of experience before most people can tie flies of commercial quality. What's more, with bargain flies retailing for less than $1 apiece and very few flies selling for more than $2 apiece (wholesaling for perhaps half that), it's the rare American craftsman who can make a livable wage tying flies - especially when you factor in the cost of materials, such as hooks, thread, feathers and fur. It's more economical to hire low-wage workers in other countries to tie flies and import them.
According to the U.S. Commerce Department's International Trade Administration, the United States last year imported nearly 137 million flies and "artificial baits," which also includes fishing lures. That translates into thousands of jobs shipped overseas. And that's bad for the United States, right? Not really.
At the same time that fly-tying jobs were outsourced to Asia and elsewhere, the American fishing industry blossomed. According to the American Sportfishing Association, anglers today spend $41.5 billion in retails sales and generate $116 billion in overall economic activity annually - making fishing the equivalent of 32nd on the Fortune 500 list of America's largest companies. Nearly 1.07 million Americans find work in fishing-related jobs. The ASA says fishing-related businesses support more than 7,000 jobs in Montana, accounting for over $136 million in wages and a total economic impact of $544 million annually.
Fewer Montanans may be working as commercial fly tiers than a generation ago, but more are working as guides, boat-builders, rod makers, sales clerks, hoteliers, outdoor writers, biologists and such - all jobs that pay more than most people ever could earn tying flies.
What's more, if you were to compare today's average fisherman's fly box with that of his grandfather's, what you'd see is a much larger and more diverse selection of flies in today's box. That and a whole lot more equipment and more expensive tackle in general. Lower-cost imported flies make it affordable to stock up on more flies. Money not spent on flies very likely gets spent on more expensive rods or clothing or services. And all of that generally translates into greater fishing success, greater satisfaction and even greater demand for goods and services.
And now look: Finding it tough to compete with imports on the basis of price, American fly tiers are finding ways to compete on the basis of quality and creativity. Many tiers carve out a niche by specializing in flies especially suited for local waters. Others come up with innovative new designs that catch more fish - or at least capture fishermen's imagination. Walk into any upscale fishing shop in America and you'll find such value-added, locally tied flies selling for a premium.
Meanwhile, halfway around the globe, people are buying food, shelter and clothing with the money they earn tying the run-of-the-mill flies that so many American fishermen use. Their productivity contributes to other economic activity that, as it spreads across the vast array of manufacturing and service jobs we might consider outsourced from the United States, ultimately, leads to the purchase of machines, grain, medicine, computer software, music CDs and myriad other products created by workers in the United States.
They sell us stuff they make cheaper or better, and we sell them stuff that we make cheaper or better. Over time, we all fare better than we would with self-sufficient economies. That's the lure of free trade.