JetBlue Rocks The Outsourcing Argument.

Bruce Nussbaum

We've all heard the economic arguments about outsourcing--the good, the bad and the ugly ones. A most compelling point is that outsourcing is a deflation phenomenon. It's all about cutting costs which lead to lower prices, not to mention lower wages.

But JetBlue is proving a counter-argument--that the real forces behind deflation are technology, innovation and domestic market competition, not just globalization and lower costs of production overseas. Witness the new JetBlue flights between New York and Boston. JetBlue has bought 100 of the new Embraer jets that fly shorter routes with about 100 passengers.

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