Earning Trust

Economy is one of the most crucial aspects of the government. Any one seeking elected office has their economic views and qualifications scrutinized to the highest degree - the reason being that no stable economy can exist unless people trust those that are in charge. In “Globalization: Threat or Opportunity for the U.S. Economy?”, Robert T. Parry aims to gain that trust and inspire a sense of confidence. As the CEO of the Federal Reserve Bank of San Francisco, Parry delivered this address vocally to a group of investment professionals in Hawaii, and later had it published in the Bank's newsletter. He speaks on the topic of outsourcing, and its effect on both the national and global economies: complex and oft-times controversial topics. However, he effectively uses his strong background and tactful writing style to tackle the issues and leave his audience with a better understanding and a more optimistic outlook.

Parry begins with an immediate reference to his qualifications. Within the first sentence he identifies himself, “as a monetary policy maker”. The reference is not egotistical at all – but well placed. The article contains a great deal of subjective analysis, and a reminder of whose analysis it is is essential to its credibility. Parry is a respected member of the economic community, and has been appointed to a number of government positions. Obviously the worth of his professional opinion is recognized and appreciated by others. He has experience, and access to a much higher class of information than the average blue-collar worker. This credibility is more than a nice addition – it's crucial to his argument. On one occasion, he confesses that the government does not have “official statistics”, but goes on to cite several popular estimates that show that the evidence that supports his claims is in a staggering majority.

Another of Parry's strengths is his use of rhetorical tactics, the first of which is his skillful use of analogies. He compares the international practice of “off-shoring” to the more familiar ideas of a car manufacturer buying brake pads form another company, and a cafeteria hiring an outside cleaning service. Analogies can be dangerous tools when explaining complex systems, but Parry manages to use them without having to sacrifice accuracy for simplicity. He goes on to compare the concept of specialization to a way of life that nearly everybody is familiar with. “No family tries to make everything that it eats, wears, and enjoys. If it's cheaper to buy something or have someone else do something, that's what a family does. Then individual family member can concentrate on becoming good at their jobs in order to pay for what they buy.” He may also have intended more in this reference – as it shows he considers family life, even when discussing global issues that happen on a monumental scale.

The reason these analogies are so accurate despite being so simple, is that they are based on simple, natural, and universal economic law. That happens to be something they have in common with the rest of Parry's arguments, which is exactly why they are so strong. Parry uses several statements of verifiable facts that make sense, but are often overlooked. Reminding the reader that “economic activity flows both ways” and that people prefer to buy things at lower costs, may seem like obvious statements – but they are facts that are almost never considered in a debate on outsourcing. The laws do indeed show that the economy is balanced, but the way Parry presents them leave his audience with a feeling that, if left to be a free market, the economy is inherently stable. That's exactly the kind of feeling he is trying to promote.

Parry also seems to have a natural ability to radiate a positive tone, while at the same time demonstrating honesty and integrity. On numerous occasions he shamelessly points out the reasons people fear outsourcing. He admits that “outsourcing can result in job losses if the outside supplier is more efficient”. By facing the issue directly, he shows he has nothing to hide, and also gives himself an opportunity to turn the perceived negative into a provable positive. He cites statistics that show that “in terms of office work, the U.S. insources far more than it outsources”. In addition to showing his awareness of such issues, he also shows his sensitivity to them. Almost apologetically, he offers, “Words about aggregate demand can seem like cold comfort to the individual workers whose offices and plants are closing because their jobs are going overseas.” He specifically states that he believes, “it's far more appropriate to have policies that focus on protecting the people at risk.” Again, there are deliberate efforts to separate himself from the corrupt stereotype of public officials, and establish a reputation of trust. He makes no attempt to morph the evidence and analysis he uses – but instead focuses on making those observations work for the good of the people.

It would be easy for man with government ties and the demigod-like title of “CEO” to be grouped in with the image in most people's minds: a gray suit with a brief case and no scruples. Nobody trusts such a man, especially not with their money and freedoms, and neither an economy nor a government can be based on such a widely universal distrust. Parry is obviously aware of this – and has made a very successful attempt to break out of that mold, and show a more reliable image: a man who understands economics, and is actually thinking about those affected by his day-to-day business. That's a smart way to foster economic stability.