Learn More about Offshoring

Fact Sheets

Press Releases

Reports


Offshoring


The debate now raging over service-sector offshoring (outsourcing jobs overseas) represents the forseeable expansion of concerns first voiced in the early 1990s over the effect of globalization on U.S. jobs. These concerns were widely heard when Congress was faced with two transformational "trade" agreements: the NAFTA and the Uruguay Round of the General Agreement on Tariffs and Trade (GATT), which established the WTO. The focus then was the future of U.S. manufacturing jobs. The legal protections and rights of these trade agreements have made it easier for U.S. companies to maximize profits by moving operations "offshore," typically to countries where wages are far below those of U.S. workers and where there are few environmental, health or safety regulations with which they must comply.

Widespread public concern over the growing offshoring of a range of back-office, technological and other professional occupations made this a very hot political issue in the last three elections. Increasingly, policy makers and economists are coming to realize that something dramatic has occurred that cannot be explained by prevailing economic theories and models.

Public Citizen's 2006 report, Addressing the Regulatory Vacuum: Policy Considerations Regarding Public and Private Sector Service Job Offshoring, proposes two distinct sets of policies that Congress and state legislatures should consider in response to this latest wave of offshoring. The first set of policy options are required to ensure that identity theft, financial fraud, irreversible exposure of sensitive personal medical and financial information, and domestic infrastructure sabotage threats do not increase with the move to shift professional and service sector work overseas to lower-wage countries.

The second set of policies is aimed at protecting the right of state and federal government to invest taxpayer dollars back into the domestic economy. To date, Congress and over 30 states are considering policies that would prevent service work paid for with state and federal tax dollars from being sent overseas.

Featured resources


Copyright © 2014 Public Citizen. Some rights reserved. Non-commercial use of text and images in which Public Citizen holds the copyright is permitted, with attribution, under the terms and conditions of a Creative Commons License. This Web site is shared by Public Citizen Inc. and Public Citizen Foundation. Learn More about the distinction between these two components of Public Citizen.


Public Citizen, Inc. and Public Citizen Foundation

 

Together, two separate corporate entities called Public Citizen, Inc. and Public Citizen Foundation, Inc., form Public Citizen. Both entities are part of the same overall organization, and this Web site refers to the two organizations collectively as Public Citizen.

Although the work of the two components overlaps, some activities are done by one component and not the other. The primary distinction is with respect to lobbying activity. Public Citizen, Inc., an IRS § 501(c)(4) entity, lobbies Congress to advance Public Citizen’s mission of protecting public health and safety, advancing government transparency, and urging corporate accountability. Public Citizen Foundation, however, is an IRS § 501(c)(3) organization. Accordingly, its ability to engage in lobbying is limited by federal law, but it may receive donations that are tax-deductible by the contributor. Public Citizen Inc. does most of the lobbying activity discussed on the Public Citizen Web site. Public Citizen Foundation performs most of the litigation and education activities discussed on the Web site.

You may make a contribution to Public Citizen, Inc., Public Citizen Foundation, or both. Contributions to both organizations are used to support our public interest work. However, each Public Citizen component will use only the funds contributed directly to it to carry out the activities it conducts as part of Public Citizen’s mission. Only gifts to the Foundation are tax-deductible. Individuals who want to join Public Citizen should make a contribution to Public Citizen, Inc., which will not be tax deductible.

 

To become a member of Public Citizen, click here.
To become a member and make an additional tax-deductible donation to Public Citizen Foundation, click here.