The issue on outsourcing jobs is not only jobs being taken away from Americans but its hurting our economy. There are many other smaller issues that are created when jobs are outsourced. Items such as containers that the items are shipped in, it is cheaper to build a new container where the item is being built than it is to ship the empty container back. That creates a smaller issue of having thousands of unused containers lying around. (Winkipeida, 2013) The larger issues with outsourcing are jobs for American’s being shipped overseas and American citizens being left with out jobs.
If we could import fewer items and produce them locally instead, we could reduce the amount of capital that is mo... ... middle of paper ... ...tries where low labor costs give them an advantage over other locations. Because minimum wage is so relatively high in the United States, the costs associated with making things like clothing, electronics, and toys would skyrocket if they were created here. In turn, the price that American consumers pay for them would go up and fewer people would be able to afford them—lowering both the economy and the standard of living for millions of Americans. So what can we do? Buying American-made products would likely help with the immediate recession by creating more jobs.
While outsourcing does take away jobs from people here in the States it does help us by making prices for consumer goods lower. Many major and small companies outsource jobs. Major companies such General Electric, Caterpillar, Microsoft, Wal-Mart, Chevron, Cisco, Intel, Stanley Works, Merck, United Technologies, and Oracle all out source jobs and have recently cut their workforce by 2.9 million people and hired 2.4 million overseas in the last decade. (Jilani) Many of these major companies outsource jobs because people in China, Korea, Indonesia, and many other countries will work for much lower wages than people in the United States, which in return makes it cheaper for the consumers in America. However, large companies aren’t the only ones guilty of our sourcing.
The largest companies in the United States are finding that there are workers that are just as qualified in other countries that do not require as much pay. The article Vanishing Jobs says, “Nationally, layoffs are eliminating jobs far beyond blue-collar workers... in the ever shrinking manufacturing sector” (Katel). This quote interprets the idea that business will do anything to make a greater profit through cutting costs. Most politicians say that the issue behind job loss in the United States is because of lack of education. This to some point is true; however, the evidence provides the information to conclude that the degree holders are mostly the ones losing their jobs because of the higher wage that is obtained by the degre... ... middle of paper ... ...ect on the college graduates and younger children of today.
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.
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.
Other countries that are suitable to perform the jobs needed may demand less money to finish the jobs. The main purpose of this paper is to explain why businesses should outsource to other countries that can do the work they need at a cheaper cost. Many Americans blame outsourcing for the current unemployment rates, even though the amount of Americans on financial assistance programs that are currently unemployed and are not looking for a job is high. This paper is intended for those that blame outsourcing on the unemployment rates and for American businesses that want to provide quality goods at a reasonable cost for American consumers. This paper will inform the audience on the benefits of why businesses should outsource.
The U.S. Government has to give corporations financial incentives to keep the jobs here, such as tax incentives. It has to be a win for the economy. Otherwise, companies will continue to take the jobs overseas. In the late 1990’s the high tech jobs did wonders for the economy helping to reduce the jobless rate to its lowest level in decades. These days, most high tech jobs have been outsourced to foreign countries which leave many American job seekers looking for jobs or standing in the unemployment line.
Factories of companies located to other countries have a huge impact to America; it increases the unemployment and a big loss to the revenue of the U.S Government. It takes the work the Americans should have at factories rather than the other country benefitting on it. Moving American factories and companies in America will help industrial and can cost a lower price on products. It may lessen incentives to move companies and factories
The Downward Spiral of the United States Economy In the world to date, there seems to be an increase of world governments needing bailouts, and people of the world needing assistance from the United States. This idea has caused many Americans to come to the conclusion that if the United States closed off borders to foreign trade, it would increase it’s standard of living and make America more profitable. However, this idea is false. The United States must not close off it’s borders to foreign trade because if trade borders were to close, American manufacturing plants would begin to shut down, the American transportation system and public services would suffer resulting in American job loss. If the US closes off borders to foreign trade, manufacturing companies would feel a financial strain, causing potential job loss.