The Senate might have quashed Democrat plans to force U.S. firms to produce jobs and profits at home, rather than overseas, but India Inc is wrong to think the danger has passed.
Over the past few weeks, India’s newspapers have been littered with stories surrounding U.S. President Barack Obama’s comments on curbing outsourcing, and India Inc’s gross indignation at the White House’s intentions.
No surprise, then, to see bullish headlines following the Senate vote that effectively ended legislation dubbed the Creating American Jobs and End Offshoring Act. ‘India Inc cheers defeat of anti-outsourcing bill in US‘, ran one leading daily, while another led with ‘Anti-outsourcing Bill dies a quiet death in the US‘. Death is wide of the mark.
With the crucial November mid-term elections looming, the biggest issue for U.S. voters is the economy, with many angry that the lauded economic stimulus Bill passed last year has not prevented the unemployment rate rising above 10 percent. The ball is in Obama’s court, and if he can’t rectify the situation, the Democrats will likely suffer at the hands of the electorate in two months’ time.
Thus for the Republicans — who if in power would surely be contemplating similar anti-outsourcing legislation to appease angry voters seeing jobs flourish in Bangalore instead of Baltimore — the goal is to show Obama and the Democrats as an incapable party, unable to govern and unable to fix the problems. And that means blocking legislation.