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effects of outsourcing in america
effects of outsourcing in america
outsourcing and the us economy
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With the United States’ economy in a depression and our unemployment rate skyrocketing to record highs, job-outsourcing has moved to the top of the list of controversial issues. Froma Harrop’s essay New Threat to Skilled U.S. Workers and Thomas Friedman’s essay 30 Little Turtles discuss two different viewpoints of job-outsourcing, and their effects on society. Does our government really want to cut back on job-outsourcing, and what can society do to help the issue? Friedman’s standpoint on job-outsourcing shows how it is emotionally beneficial to other countries and Harrop’s factual standpoint shows job-outsourcing regulation, however, I feel that our citizens are unaware of the opportunities and our government is eager to send the jobs overseas.
Froma Harrop’s essay New Threat to Skilled U.S. Workers is a detailed and factual essay about the mystery of job-outsourcing. She also mentioned the long-term effects of the issue on our economy. Harrop’s audience for her essay leans towards skilled U.S. workers who are unaware that many jobs are moving overseas, but includes young college students as well. At the beginning of the essay Harrop immediately starts with an account from Alan Blinder, a Princeton economist. She describes his great displeasure after hearing how enthusiastic U.S. executives were while discussing job-outsourcing. Another pertinent piece of information included in Blinder’s account was his prediction that a great amount of jobs would be lost in the near future. “We speak of computer programing, book-keeping, graphic design and other careers once thought firmly planted in American soil” (Harrop 130) Harrop’s use of other sources helps give more credibility to the essay; however, it can decrease the complexity. Aft...
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...on. Harrop’s stories differed from Friedman’s in the fact that her’s were not first-person accounts and Friedman's were. Each author chose to take a different perspective on the issue, giving the readers two sides to consider. The biggest difference between these two essays is the fact that one is pro job-outsourcing and the other is con job-outsourcing.
Froma Harrop’s essay New Threat To Skilled U.S. Workers and Thomas Friedman’s essay 30 Little Turtles have more differences than similarities, but there is a lot of information that has not been covered by these two articles. First off, it seems as if our government is not putting in the effort to stop job-outsourcing. If they were, our nation would have higher regulations and laws against the H-1B visas. Instead, many government officials are voting to raise the number allotted to almost double the current amount.
By offshoring American jobs companies will be able to profit from those positions. In contrast, employees will be affected and probably will need to gain more training in order to find another job.
In the article Your Local News, Barbara Ehrenreich provides her personal and professional insights into outsourcing, starting with a newspaper in California that has begun outsourcing the writing of even some of its local stories. In the article The Rise of the Rest, Fareed Zakaria looks back on history to see how we arrived at globalizing and he examines the present through myriad examples and data to then consider the globalized future with “the rise of the rest.” Zakaria’s article better helps understand Ehrenreich’s insight about outsourcing. With the help of Zakaria we better understand Ehrenreich’s outlook of outsourcing.
Outsourcing is a complicated and a multifaceted subject that involves a “business[’s] purchase of parts or labor from another company rather than maintaining a sufficient enough number of its own employees to do the same work in the country where the company is already based” ("Outsourcing"). The first practice of outsourcing was in medieval times when “nation-states called in soldiers-for-hire to help their own military forces during ongoing conflicts” ("Outsourcing"). Many think of outsourcing as a one way trade of production facilities moving outside of a companies locale but in actuality it is a two way trade that also involves companies from other areas moving their factories to local areas where conditions are beneficial for the specific business. Outsourcing has evolved but the main idea has remained the same. The recent increase in outsourcing “was initiated by Wall Street pressures on corporations . . . . for increased profits . . . in the production of goods and services marketed in the U.S."(Roberts).
For advocates of global business, the hope is that outsourcing will help lift the United State’s economic growth and development by lowering the input cost of services (i.e. labor and materials) and by opening new markets abroad. Mainstream economists believe that outsourcing will have ...
...ing of jobs that Americans are qualified and trained to do. If a company were going to outsource jobs maybe a good policy solution would be to match, if not double the number of jobs in the states to that of the number of jobs being shipped away. Another thing to consider is that the government doesn’t necessarily have to directly regulate business hiring. The government could impose a self-regulatory policy where as the big companies could set their own rules and guidelines and have an industry standard for the amount of outsourcing a company can do.
Outsourcing emerged on the financial arena during the 1980s and has since then been spreading. Outsourcing production was furthered with the process of globalization which provided a new component leading to the strengthening of resources, skill and labor specializations across the world. The process of outsourcing is using the skill and abilities of a third-party to accommodate society on the foundation of labor. As stated earlier, it was during the 1980s that the process kicked off mainly due to the efforts of corporations when they began to hire labor forces across the world. Even though outsourcing has come out from its developing stages, there are still following effects on the US economy.
...ect on the college graduates and younger children of today. Outsourcing has made nothing but trouble for the United States with the passing of free trade agreements. It will cause a lack of jobs that will run the economy into the ground, and ruin the lives of the citizens of the United States. All of that so a business can use its faulty practices to make a higher profit. Outsourcing has consequences that will haunt the average American and their families for the rest of their existence on this planet.
Do you ever wonder what our nations underlying focus is? The answer is simple and should be fairly easy to guess… Money! Outsourcing originated from someone coming up with the idea that we can make products for practically nothing in other countries and make very high profits. Although it seems like a great idea to businesses, it negatively affects our country. American consumers are buying these products that are made in other countries and the companies profits are continuing to rapidly increase. At the same time, people that are in the production field of work in America are losing their jobs because producers would rather pay foreign workers to get the job done for a much lower wage. When it comes down to it, one of the reasons our economy is suffering is because of outsourcing. Basically, it all comes down to money. The consumers don’t pay close enough attention to where the products are made. Therefore, consumers are spending extra money and are causing outsourcing to thrive. The lack of knowledge Americans have on the subject of consumers affecting outsourcing is leading our country to economic stress but if we begin to recognize the issue, the jobs we could potentially save may be our own.
Many people think that outsourcing is jobs that were held in this country going somewhere else. That is not entirely accurate. Outsourcing is actually one company paying another to do some work for it. Outsourcing can be as simple as paying a company to paint your building. Or it can be as complex as paying a company to control your human resources department.
This paper provides rhetorical analyses of two presentations pertaining to outsourcing. Neither particularly opposes outsourcing, yet each provides information addressing two different outsourcing concerns. Kibbe’s 2004 article “Outsourcing: the good, the bad and the inevitable” focuses on United States (U.S.) job impact. Van Heerden’s 2010 speech “Making Global Labor Fair” focuses on human rights impact.
As esteemed journalist Tom Piatak wisely puts it, “The trickle of outsourcing threatens to become a flood.” His words speak the truth as outsourcing has left United States’ workers jobless, and it continues to increase the unemployment rate every year. During February of 2009, American workers lost a record 651,000 jobs alone, increasing the unemployment rate to 8.1 percent, the highest it has been in 25 years (Katel). Multinational corporations, hoping to cut down costs and stay profitable in the market, outsource by exporting American jobs to third-world countries such as China and India. It may seem noble that outsourcing provides third-world countries with job opportunities, but the United States’ markets and industries are greatly affected. Outsourcing is harmful to the United States’ economy because it paves the way for job losses, decreases product consumption, and widens the gap between the rich and the poor.
Slaughter said it’s a common perception that hiring overseas means fewer jobs in the United States. Not so, he said. While job losses are certainly true for some companies, statistics have shown that, generally, increased hires abroad also have complementary increases here.” (Kibbe, 2004)
Outsourcing damages the American economy by sending jobs overseas. "Outsourcing" can be defined as 'the contracting of a business process to a third-party'. In the USA, outsourcing is thought of as a bad, 'dirty' word, spoken about in hushed tones and secrecy amongst upper-classmen and business moguls. As stated by W. Rivkin, Professor of Business Administration at Harvard Business School, "The off-shoring phenomenon has implications for policymakers, business leaders, and members of the workforce" (Hanna, J."How Many U.S. Jobs Are Offshorable?"). Politicians give people their false assurances and empty promises to stop it, and businesses feel the need to down-play their involvement in it. Phrases like 'Only Buy American' and 'Jap is Crap' are and have been popular calls-to-arms in the past years, and many Americans nowadays are lamenting the outsourcing of jobs to low-wage parts of the world, in particular Asia; namely India and China. In a time when unemployment in the USA is approaching 10% (combined with under-employment, the figure is actually more likely to be edging towards a staggering 20%), according to research carried out by the University of New Mexico (2013), the mere thought or suggestion of sending any jobs overseas is highly intolerable to many Americans.
Outsourcing has been around for many years. In this paper I will discuss some of the history of outsourcing, the goods things about outsourcing, and the bad things about outsourcing.
When Americans hear the word “offshore outsourcing”, they automatically assume that Americans are losing their jobs to foreign countries. Most of these jobs that companies outsource such as the garment industry jobs are offshore outsourced because they are labor intensive jobs. According to Timmerman