The Outsourcing Trickle

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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. With outsourcing, thousands of Americans are stripped from their jobs in many sectors of the industry, negatively impacting local, state, and federal governments. On average, these unemployed workers can only find new jobs that pay 80% of their original wage (Dobbs). Decreased wages diminishes peoples’ living conditions, and Americans are forced to consider multiple jobs, smaller homes, and fewer luxuries. In America, this reduced standard of living means fewer government funds. First, since people that have lower living conditions can hardly afford to pay for their own expenses, governments do not receive adequate payroll tax receipts and contributions to Social Security and Medicare. This means that the federal government can no longer provide adequate benefits for the growing number of unemployed people in Americ... ... middle of paper ... ....com/cqresearcher/cqresrre2009031300>. Piatak, Tom. "Outsourcing Threatens American Workers." Opposing Viewpoints: Globalization. Ed. Louise I. Gerdes. San Diego: Greenhaven Press, 2006. Opposing Viewpoints Resource Center. Gale. Lynbrook High School. 6 Dec. 2009 ovrc/infomark.do?&contentSet=GSRC&type=retrieve&tabID=T010&prodId=OVRC&docId=EJ3010382229&source=gale&userGroupName=lynbrookhs&version=1.0>. The Economist. "Outsourcing's Threat to the Security of Personal Information Is Exaggerated." At Issue: Does Outsourcing Harm America?. Ed. Katherine Read Dunbar. Detroit: Greenhaven Press, 2006. Opposing Viewpoints Resource Center. Gale. Lynbrook High School. 6 Dec. 2009 type=retrieve&tabID=T010&prodId=OVRC&docId=EJ3010408211&source=gale&userGroupName=lynbrookhs&version=1.0>.
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