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Offshoring Hurts the Economy, Creates $66 Billion in “Phantom GDP” - Implications for Pharma?
I needed some validation of our selection of topic forÂ Â June's cover storyÂ on offshoring and labor issues.
(Especially since only seven of you took our associated poll on the science and tech labor supply!Â Â Nearly 200 of you abandonedÂ the old oneÂ mid-survey----so it has received a face lift and is now interactive so you can see results).Â Â
That validation Â just arrived in the mail, in this week's copy of Business Week. Its cover story, "The Real Cost of Offshoring" by Michael Mandel, discusses "phantom GDP"Â and how that impacts data on overall U.S. economic growth.
In the BLS data on import prices, many of the cost cuts and product innovations made overseas aren't being counted correctly, Mandel argues, resulting in $66 billion in "phantom" gains in U.S. GDP since 2003.Â Not to be "pro-USA" and "anti-India or China," but it's important to assess the true picture and economic impacts of any major business trend. More from the author here.
What do you think of the analysis and its implications for pharma?