Americans consider their county to be the best. America helps other countries in need of assistance after a natural disaster or feed hungry Africans that are without food. There is a problem here, why do Americans help other countries when Americans are suffering. Families are starving, even parents forgoing eating so their children can. One group that can help is the top one percent in the United States. They have large amounts of money, why can’t they give any away? They use their money to boost their profits instead by underpaying employees to other countries, avoiding taxes through loopholes and tax havens and outsourcing jobs to other countries. The money they send away could be used for government funded programs like food stamps and unemployment or they could donate to food banks. There is a plethora of ways big business is damaging our own economy and it is starving our people. The main goal of a business is to break even, spending about the amount as profits gained, or gain a net profit and expand. While expanding is expensive, companies will attempt to outsource jobs to different countries for a cheaper cost . Outsourcing is an issue for multiple unemployed and employed Americans, where the businesses could be supporting families by creating jobs for those who need them. Flatworld solutions, a company made to help businesses outsource jobs, would argue, “You can get your job done at a lower cost and at better quality as well” (Flatworld). It does lower the cost,
Instead of relying only on domestic workers, many companies also outsource some of their labor into foreign markets. This practice can have negative effects on the economy overall, individual businesses can often benefit from this practice. Outsourcing offshore can allow companies to tap into foreign markets and expand their businesses.
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.
A major type of unemployment that is hurt most by outsourcing is factory labor and manufacturing. The reason why factory labor and manufacturing jobs are outsourced is because labor laws in the United States are tougher than the countries where the jobs currently are. Where the jobs are now labor is cheap and just as good as labor in the United States. One example of outsourcing is when a company has a factory in the U.S. that pays it’s workers $23.32 an hour plus benefits closes that factory and moves to China where the pay is $1.36 an hour without benefits.
The dawn of the outsourcing era. Many large U.S. corporations cultivates outsourcing faster than we can imagine. The trend that began in the late 1970 and picked up speed in the 1900s with the opening trade with China, India, and Eastern Europe (“Outsourcing: What’s the true Impact”). In its broadest sense, outsourcing is simply contracting out functions that had been done in-house—a longtime U.S. practice (“Globalization: Threat or Opportunity”). Subsequently, outsourcing is an essential part of globalization; and it is the combination of markets through the cooperation of internalization, federal, and state governments with corporate companies to produce products on a reduce production cost, and offer services on lower labor cost. When a U.S. manufacture product, and buys material from an intermediate supplier from out of the country rather than producing them in-house, that is what is called outsourcing. Also, when U.S. corporation hires outside contractor out-of-the-country to do U.S. call center services for less labor cost that is outsourcing. When a company deals out its operational task, such as payroll, accounting, and software operations that is outsourcing. Obviously, all of these examples seem to benefit and in favor of the corporations. To get the clear understanding of outsourcing for major corporation perspective, I have interviewed IKEA’s U.S. Deputy Retail Country Manager Rob Olson about outsourcing—Swedish
Many people may compare outsourcing to hashtags or selfies, a waste of time and pointless. Also, people may say that outsourcing hit America in a huge tidal wave that is now uncontrollable. Ehrenreich exemplifies this when she writes,”I should’ve seen it coming. In the eighties, US companies began outsourcing the manufacturing of everything from garments to steel, leaving whole cities to die” (609). Basically, Ehrenreich is saying that if outsourcing ruined us then, it will ruin us now; but clearly outsourcing has not ruined us that much because, of all of the jobs that we have outsourced in the last decade, we’re still standing strong. Zakaria contradicts this by saying,”Over the past twenty years, as globalization and outsourcing have accelerated dramatically, America’s growth rate has averaged just over 3 percent” (619). We’ve outsourced all of these jobs and yet our population has grown. The fact that we’re giving opportunities to other countries has not taken
In that context, the increasing of outsourcing in the US is inevitable. The 2016 presidential candidates mentions about the negative effect of outsourcing to the US due to exporting of jobs to over-sea vendors. The outsourcing opponents claim that outsourcing is having a negative effect on the American economy, as one problem is solved by creating another problem. The jobs were taken away from the US, double the unemployment ratio and seriously impact to Americans, especially the disability.
As the world has gotten “smaller” in terms of trade, outsourcing has become a hot topic in much political and economic debate in the United States.
Critics see outsourcing as impacting both domestic and foreign countries in a negative way. Domestic economics falters since business is transferred to outside sources, therefore local employment suffers, prices may rise, and people may lose their jobs. The United States loses about 230,000 jobs a year due to outsourcing and new jobs are not crated that frequently or rapidly, therefore local unemployment rises. At the same time, the US also loses skills due to outsourcing. Developing countries also experience global stratification where, even though the imported business upgrades social conditions, social demarcation and hierarchy occurs where the labor class is exploited by newly formed elite. This is called "Global stratification". Consequences may be disastrous not only for the country
By 2004, more than 80 percent of U.S. executive boardrooms will have discussed offshore sourcing, and more than 40 percent of U.S. enterprises will have completed some type of pilot or will be sourcing IT (information technology) services. In fact, some of the biggest firms in the United States have been seriously discussing outsourcing recently. One of these companies being IBM, the world's biggest computer maker, discussed saving about $168 million beginning in 2006 by moving thousands of programming jobs overseas, according to internal information provided. U.S. businesses, battered by the recent three year bear market in stocks and an economy struggling to find its footing, have already developed a taste for super cheap labor in developing countries, where workers are increasingly better trained especially if they've spent significant time working in the United States on temporary visas. The impact of overseas outsourcing could be significant; many economists doubt the trend is big enough yet to disrupt the broader U.S. economy. Imports of business services account for less than 1/20 of 1 percent of gross domestic product, the broadest measure of the nation's economy. At the least, it's not doing much to end the longest U.S. labor-market slump since World War II. More than 9.3 million people are
Let’s get something straight: America was never “great.” From views on African Americans, immigrants, religions, homosexuals, and even women, America may have overcome how harsh they treat different people, but they are still facing controversies over said topics. When President elect, Donald Trump says “make America great again,” it’s hard to understand what he means because, again, America was never actually “great.” As a character in the Netflix Original Series: Orange is the New Black said, this is the “land of the free, home of the racist.” America may have more freedoms than most countries, but Americans then and now blame minorities for our problems, when in reality, they should look in a mirror.
Between the start of the 1800’s and the mid 1850’s, the United States acquired a vast amount of territory through wars, annexation, and purchases. Beginning with Thomas Jefferson and the Louisiana purchase in 1803, the United States began a campaign to acquire all the territory west of the Mississippi River and reach the coast of the Pacific Ocean. This time period would become known as Manifest Destiny. Over the five decades that Manifest Destiny lasted politics and the government changed along with the geographic face of the United States while the country expand to cover most of North America. Of these political changes, the death of the Federalists, birth of the Whigs and reformation of the Democratic party were among the most prominent. However an underlying conflict began to progress with each new purchase and acquisition of territory. Manifest Destiny led to multiple political conflicts resulting an increase in sectionalism and eventually complete sectional division.
Many Americans are against outsourcing. Outsourcing leads to many Americans unemployed and unable to find a job. When a company decides to outsource they must lay off current employees, this causes a huge impact on the community. Many people in one area are then looking for jobs. When the people are unable to find a job they will have to focus their income on needed essentials. Even if outsourcing causes prices to be lower, without a job Americans won’t be able to buy those products.
Supporters argue that outsourcing has a minimal effect on job losses, and has increased economic growth in some cases. In actuality, outsourcing has decreased the domestic economy by decimating job opportunities and lowering wages. Steven Pearlstein, economics columnist for the Washington post reaffirmed arguments that outsourcing has decreased employment availability and stability of the economy by saying “There are growing numbers of people who think that what started as a sensible, globalized extension of sending some work outside a firm to specialized companies may in fact be creating long-term structural unemployment in the United States, hollowing out entire industries”. (Pearlstein 3) The IT industry has been especially affected by outsourcing, with many jobs moving overseas to India and Bangladesh, leaving employees in the United States without a job, unable to compete with lower wage offerings. Supporters of outsourcing argue that this business strategy increases everyone’s productivity, raising everyone’s income, and boosting economic growth. Many such studies tend to focus on large multinational corporations, for which the data and anecdotes are more readily available. And indeed, during the 1990s, the data seemed to show that for every one job added abroad, companies added almost two new
For big corporations outsourcing gain the overall advantage because they are able to increase their economic output while drastically decreasing their overhead expenses. The saving the companies incur is then passed on to the consumer who can afford to buy multiple products at a lower price. They are able to acquire access a wider range of the world's resource and intelligence. Because big corporations are able to offer competitive wages to foreign workers they are able to hire the best talent within country. This also frees up jobs in America, by allocating tedious jobs overseas big corporations can better utilize talents in their home countries. By doing this they can focus on more important corporate related tasks. The benefits of outsourcing in low wage countries is that it raises their standard of living. Foreign workers are often payed twice as much than what could be offered by jobs within their country. Foreign worker also gain valuable skill sets from international companies. These skill sets increases their marketability within the workforce. The skill sets they develop are transferable and gives them a competitive
Many businesses in United States manufacture their product overseas. This involves manufacturing products outside United States where the labor cost is cheaper. Because of cheap labor, it is often more economical for a U.S. company to manufacture overseas and pay the shipping costs than to manufacture in the United States. For a company, the savings may be substantial. However, there are negative impacts on U.S. employment, as many jobs in the United States are being outsourced and replaced by overseas positions. The manufacturers outsource production projects to save time, money or resources. The manufacturing is outsourced so as to remain competitive and maintain a steady work flow. Without outsourcing, manufacturing costs could escalate to the point at which no product would sell and all employees would have no work. Outsourcing comes