If jobs were brought back to America that would allow more people to spend money on various things building... ... middle of paper ... ...s to buy products at a lower price but is it worth it in the end. More people are unemployed and they cannot buy the products and our economy is hurting from it. It looks good when a product is cheaper it attracts more customers but another thing is the quality. If products are created here they may be created with more quality as employees will actually spend more time as they will take pride in creating them as their friends and family will use them. When people create them foreign they do not know who’s going to use them and their getting paid near nothing.
Since 2011, outsourcing jobs has become a major part of the way American companies produce goods. Outsourcing a job occurs when you obtain goods or services from a foreign supplier instead of from an internal supplier. Many companies in America pay people in other countries to produce goods instead of producing them here in the country because it seems cheaper. This practice, originally thought of as a solution to the rising prices of consumer goods has also become a problem. While outsourcing does take away jobs from people here in the States it does help us by making prices for consumer goods lower.
(Greene, 2006) It's also believed that if the US continues to trade freely with the overseas countries then the powerful drag of their far lower wages will begin dragging down American's average wages. (Greene, 2006) Economist has found that tax cuts offered to large manufactures have caused productivity to go up. The manufactures are actually given tax breaks to be able to purchase more machinery to do the jobs and therefore fewer laborers are needed, causing a large number of workers to be displaced. The tax act that was initiated by Bush administration for big businesses was the "bonus depreciation". Under this act the more the companies spend on equipment the less the tax they have to pay.
Even though ou... ... middle of paper ... ...y considered expensive because American workers deem themselves to be greater and do not approve of basic job positions, they aim higher. Therefore, companies need people to do these basic jobs and if American workers will not then companies have to search elsewhere for the workers. The amount of money a company spends on just one American worker per year is often enough money to pay several outsourced workers. Outsourcing for companies is a valuable practice that if done correctly could expand the company. Outsourcing does not greatly influence any economic troubles and therefore should be seen as a valid option for companies searching to expand.
One may ask, what does this have do with me? Well prior to the recession, the Fiscal Policy Institute listed these small bu... ... middle of paper ... ...s at lesser paying jobs, whereas only twenty-six percent beg to differ. Because many immigrants typically come to America with next to nothing, they are obviously going to be more likely to work for lower wages. This is, also, why it is so beneficial for foreigners to start small businesses. Because they are willing to work harder for less money, this reduces the need for outsourcing.
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.
Dow Theory Forecasts, 69(12), 1. TM Balance Sheet. (2013). Yahoo Finance. Retrieved January 31, 2014, from http://finance.yahoo.com/q/bs?s=TM+Balance+Sheet&annual
The outsourcing of jobs from United States of America is becoming a major threat to the American economy. Despite the substantial benefits of outsourcing, the increase in unemployment and the economy decline causes a major concern to the US government. But economists have cited many points that support outsourcing of jobs based on certain facts. If US companies do not outsource their jobs then foreign firms will produce cheaper goods and sell it to the US market. The demand curve is negatively sloped, so as the price of the substitute goods (3) that are outsourced gets low, the demand for the costlier US goods will come down.
Tariff and Non-Tariff Barriers Tariff and non-tariff effect global financing operations by having an impact on whether countries will build and invest in companies in the home country. If an organization wants to build a company that imports raw material that has a tariff on it, it would make the product considerably more expensive to produce and export. Tariffs do benefit the government by increasing the revenue and also benefit home-based businesses by decreasing foreign competition. The tariff also helps protect jobs in the industry that has eliminated the foreign competition but a negative impact is felt because it causes the consumer to pay more for a product that is imported (Hill, 2004). If a country it prone to levy tariffs on items that an organization may need, it would increase the risk of doing business while located in that company.
People think that raising the minimum wage can benefit people who have low-income. Well, known business and corporations do not want the minimum wage to increase, as of a result they will have to pay their employees more and corporate will lose money from paying their employees more. According to “Issue: Minimum Wage” (Marcia Clemmitt) “Business owners in some labor-intensive, low-wage industries face serious uncertainties when minimum wages rise.” Also, companies would rather pay a teenager and not an adult because adults would complain about being paid minimum wage. Adults make a living off of what they earn teenagers have a job so they can have extra money when they go out. If minimum wage increases that means that everything will be more expensive since their income is rising.