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US President Barack Obama?s nine-day trip to Hawaii, Australia and Indonesia, which resulted in a massive deal between Boeing and Indonesia?s Lion Air, is highly ironic.

US President Barack Obama?s nine-day trip to Hawaii, Australia and Indonesia, which resulted in a massive deal between Boeing and Indonesia?s Lion Air, is highly ironic. The $21.7 billion deal?the biggest Boeing has seen so far?is for 29 Next-Generation 737-900 extended range planes and 201 of Boeing?s new 737 MAX planes. More importantly, it will create a large number of jobs in the US?more than 100,000, according to Obama. In the run up to Obama?s trip and during it, the White House was going to great pains to stress the job-creating potential of the Asia-Pacific region, a far cry from the pre-recession days of criticising the region for taking away American jobs because of outsourcing and cheaper labour. In fact, most of Obama?s recent trips, including the one he made to India, have been with the aim to create jobs back in the US. His argument is that the only way forward for the US and global economy is if the developing countries manufacture more, and so import more raw materials, thereby creating jobs in countries like the US?showing acceptance that a protectionist regime cannot work if growth is needed, especially in today?s scenario. As is now well known, the recession has hit the US badly, with massive unemployment and increased cost-cutting resulting in a lot of pressure being placed on Obama leading up to the elections in 2012. Last year, the US state of Ohio banned the outsourcing of government IT and back-office jobs to offshore locations in a bid to retain jobs in the US. India, among others, criticised the move, but the protests fell on deaf ears, with even Obama speaking out against offshoring.

Even if it makes economic sense, it is ironic that the US has to turn to the very region it was protecting its jobs against to create more jobs in the US.

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First published on: 21-11-2011 at 03:30 IST
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