US Chamber of Commerce plays down offshoring fears

The US Chamber, in a report to members of Congress and the administration, noted the significant benefits to the US economy from foreign multinationals operating in the United States compared to the relatively small number of American jobs that are moved offshore. Further, the report outlined the substantial benefits from America’s leadership role in the worldwide economy. The Chamber said critics of outsourcing often overlook the benefits and the jobs created here when foreign firms open operations in the US.

‘‘The American economy did not become a world leader in creating wealth, jobs and prosperity by clinging to the past,’’ said Donohue, adding that ‘‘protectionism is a poor substitute for innovation’’.

State legislatures and the federal government are considering proposals that would punish US multinational companies that outsource, by denying them contracts or changing the tax code. Government market interference would stifle competition, drive up costs, and eliminate more jobs than are ever likely to be outsourced, according to the chamber.