This seems to fly in the face of some of his other statements from just last week. If he's consistent in using taxes as a tool as he's stated in order to get businesses to do things he wants them to do, then he needs to think about this decision. He's recently said that to help the economy, he wants to create new jobs for Americans. How does encouraging corporations to look overseas do that?

Yes, it's reality that it's currently cheaper to turn to India, at least for some things--although for real goods if oil rises high again it won't be. But as competition for labor rises, those workers are going to be more expensive. According to a study mentioned in the Freakonomics blog yesterday, the birthrates of both China and the U.S. have been mis-rated: China's birth rate has dropped so much and the U.S.'s grown so much that by 2050, researchers estimate they'll be about the same. That will mean even more competition for jobs, as there will be fewer workers and industries have to entice them with higher wages.

Likewise, the birth rate in India has been declining for a decade or more. Eventually this could create a similar situation to the one in China.
Source(s):
http://freakonomics.blogs.nytimes.com/2009/05/04/a-new-look-at-old-demograp...

http://www.globalhealth.org/sources/view.php3?id=252

http://www.indexmundi.com/india/birth_rate.html

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