The outsourcing of jobs from the United States to other countries, has been on the rise for over the last two decades. Outsourcing is a company providing a service that is cost effective. External companies, that provide a service, may not always be outside the country, in most cases, they are in other countries due to the low cost of labor. Outsourcing is defined as, the act of one company contracting with another company to provide services that are normally done by in-house employees. Companies now outsource jobs such as call center services, customer service, technical support, distribution and payroll services to other companies. Entreprenur.com stated that outsourcing is “the practice of having certain job functions were outside a company instead of having an in-house department or employee handle them; functions can be outsourced to either a company or an individual. It's the practice of sending certain job functions outside a company instead of handling them in house. More and more companies, large and small, are turning to outsourcing as a way to grow while restraining payroll and overhead costs.” Outsourcing is having a tremendous effect on the United State economy. Outsourcing has added to the rise in our nation's unemployment rate, this practice destroys jobs for Americans. The practice is bad for America, the outsourcing of jobs takes away employment from less skilled American workers. Outsourcing jobs to other countries leads to higher unemployment rates and not only does this affects less skilled workers, but this practice affects middle-class America. Corporations benefit by paying lower tax and low wages for jobs, which the end result a lot of Americans are out of work. Corporations do this for a higher profit, but what they do not take into consideration is that more people today are below the poverty line, this does not benefit the economy. The end result is, it reduces consumer spending. There are two main arguments, and statements against outsourcing; The Economic of Outsourcing.
…show more content…
The first is that outsourcing has lead to the drainage of jobs that belong to the American middle class; the second arguments argue that those jobs outsourced leads to poorer quality in goods and services produced. According to The Economics of Outsourcing, the continual practice of outsourcing leads to a loss of American jobs and a declining standard of living. According to the Bureau of Economic Analysis, already about 10 million jobs have been sent overseas since 2001. This trend has helped to fuel the high unemployment rates seen in the last few years, which leads to a decreased standard of living in the United States. Corporate greed at the expensive of hard working Americans has destroyed the lives of many working Americans. The New York Times Upfront News magazine articles said that outsourcing is bad for the economy, the article clearing explained that “Outsourcing may sound like a good deal for American businesses, but in practice it's very bad for our economy. First, when workers lose jobs to outsourcing, they are likely to end up in new jobs with substantially lower pay, and possibly a lower quality of life. Second, outsourcing places downward pressure on U.S. wages in general: American workers who are in competition with workers in low-wage countries will have a tougher time earning enough to buy a home, save for retirement, In other words, wages for many U.S. workers will no longer support middle-class lives. Third,
The first is that outsourcing has lead to the drainage of jobs that belong to the American middle class; the second arguments argue that those jobs outsourced leads to poorer quality in goods and services produced. According to The Economics of Outsourcing, the continual practice of outsourcing leads to a loss of American jobs and a declining standard of living. According to the Bureau of Economic Analysis, already about 10 million jobs have been sent overseas since 2001. This trend has helped to fuel the high unemployment rates seen in the last few years, which leads to a decreased standard of living in the United States. Corporate greed at the expensive of hard working Americans has destroyed the lives of many working Americans. The New York Times Upfront News magazine articles said that outsourcing is bad for the economy, the article clearing explained that “Outsourcing may sound like a good deal for American businesses, but in practice it's very bad for our economy. First, when workers lose jobs to outsourcing, they are likely to end up in new jobs with substantially lower pay, and possibly a lower quality of life. Second, outsourcing places downward pressure on U.S. wages in general: American workers who are in competition with workers in low-wage countries will have a tougher time earning enough to buy a home, save for retirement, In other words, wages for many U.S. workers will no longer support middle-class lives. Third,