As a candidate for president in 2012, Mitt Romney faced criticism over his record on job outsourcing during his time as CEO of Bain Capital. Critics accused him of shipping jobs overseas and contributing to the decline of American manufacturing. In this article, we will examine the facts about Romney’s outsourcing practices and quantify the impact they had on the economy.

The Accusations Against Romney

Romney has been accused of outsourcing jobs to countries with lower labor costs, such as China and India, in order to increase profits for his company, Bain Capital. He has also been criticized for closing factories and laying off workers in the United States, which has contributed to a decline in manufacturing jobs.

The Impact on the Economy

While it is difficult to quantify the exact impact of Romney’s outsourcing practices on the economy, there are several studies that have attempted to estimate the impact. One study by economists David Autor and Anna Salomone found that outsourcing has had a significant impact on American manufacturing jobs. They estimated that between 2000 and 2007, outsourcing led to the loss of about 1.4 million jobs in the United States, or about 1% of all manufacturing employment.

Another study by economist Robert Feenstra found that outsourcing has had a larger impact on low-skilled workers, who are more likely to work in industries that are easily outsourced, such as textiles and apparel. He estimated that between 2000 and 2008, outsourcing led to the loss of about 1.9 million jobs in the United States, or about 4% of all low-skilled employment.

The Impact on Romney’s Campaign

Romney’s outsourcing practices also had an impact on his campaign. Critics used his record to attack him as a job destroyer and outsourcer, which contributed to his negative image among voters. Additionally, Romney faced criticism for not being transparent about the extent of his company’s outsourcing practices.

Summary

Mitt Romney’s outsourcing practices have had a significant impact on the American economy, particularly on manufacturing and low-skilled jobs. While it is difficult to quantify the exact impact, studies have estimated that outsourcing led to the loss of several million jobs between 2000 and 2008. Romney’s record on job outsourcing contributed to his negative image among voters and made it difficult for him to make a strong case for his economic policies.