The unemployment rate has decreased, but we have a long way to go if the Government does not prohibit U.S. companies from outsourcing jobs to foreign countries. As middle class Americans, we have to make our voices heard. We need to convince our politicians that outsourcing has damaged the economy and they need to create incentive packages for U.S companies to bring our jobs back to America.
(Winkipeida, 2013) The larger issues with outsourcing are jobs for American’s being shipped overseas and American citizens being left with out jobs. If these Americans had the jobs that are being shipped overseas then more money would be in circulation and our economy would not only be able to recover from this rescission but grow. Money has to be in circulation for our economy to grow but if people do not have the money to spend then money will not circulate. Yes outsourcing jobs does allow lowering the price of products but you have to take into account what it cost to ship the products to America, which is fossil fuel being burned. 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.
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. First, we will look at an example of how consumers inadvertently continue to assist companies with outsourcing. The problem consumers do not realize is that by paying for some name brand products, we are allowing outsourcing to take place.
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.
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.
While Bernie Sanders disagrees with American outsourcing, I cannot. Sanders’ argument focuses generally on American jobs, claiming that “We have been losing millions of jobs as a direct result of our disastrous trade policies … We must do everything possible to stop companies from outsourcing jobs” (44). While perhaps low-skill manufacturing jobs are gone, macroeconomics proves that the increased economic efficiency outweighs the initial unemployment. The outsourcing of low-skill labor allows national economic focus on high skill labor outputs. This situation allows the for price of exports to go up and keeps the costs of imports low - a favorable condition for the growth of Gross Domestic Product (GDP).
With the current economic market still reeling from the effects left by the recession that consumed the United States for eighteen months, we should take the time to weigh the benefits against the possible results that raising the minimum wage could cause. Statistics show that an increase in current wage would do more damage to the already unstable market, than the good that so many government officials want everyone to believe. The misinformation that is being delivered to the ever growing population of poor individuals provides them with false hope that the extra money that they will be receiving in their paychecks will pull them out of poverty and save them. The Truth Why Minimum Wage Should Not Be Increased The minimum wage debate has been ongoing since its inception when signed by Franklin Roosevelt on June 25, 1938. This bill has been widely criticized by its opponents generating countless studies as to the effects each forced increase would cause.
One management problem that is causing outsourcing is that companies are looking for ways to cut cost tremendously in labor and manufacturing. Developing countries such as India are now taking a lot of American jobs. American companies are under pressure to reduce costs, and foreigners can do a lot of high-tech jobs more cheaply than they can be done here." That's why a lot of Americans are losing their jobs to the foreigners like the people of India and China. People in India are paid 1/10 of what employees in America get paid for doing the same job because the cost of living is a lot lower in India and other developing countries.
Therefore capital raised from one person or a group of professional investors remains a crucial source of funding for these type of enterprises. In the type of economic world which is present today the opportunity for good returns on a person's money must be in abundance to allure investments in such ventures. Capital gains taxes significantly diminish these returns, therefore reducing the incentives to invest. Eliminating the capital gains tax will spark entrepreneurship and new investments in the economy, which in turn will elevate economic growth and increase the number of jobs. In order to stimulate economic growth in the United States, taxes on capital gains should be eliminated.
Opponents of this matter may argue that increased labor costs lower overall profit for businesses (Mejeur 15). However, this argument overlooks the outweighing factor of the workers’ new potenti... ... middle of paper ... ...t jobs is completely negated and the benefits of raising millions out of poverty and workers receiving generous pay increases far exceed any drawbacks. An increase of the minimum wage is the ideal step in preserving a dynamic yet economically sound society. Works Cited Dickinson, Tim. "The Minimum Wage War."