OursourcingEssay Preview: OursourcingReport this essayThe exporting of American jobs is an issue that is important and will become increasingly so as more and more white collar jobs are shipped over seas. American companies in the past few decades have been sending American jobs overseas paying residents of other countries pennies on the dollar what they had paid American workers to do. This saves the companies millions of dollars on labor costs but costs Americans precious jobs.
If the issue of outsourcing is not watched carefully and a definitive plan hammered out, a trickling down of negative effects may occur within the U.S. economy. However, there is a polarized opinion on the effects of this “phenomenon”.
In recessions of the past the American worker was laid off with the impression they would be rehired as soon as demand for goods and services were presented again. Now people in jobs from computer programmers to telephone operators are losing their jobs and never returning to the same field again. The big issue here is that if we continue outsourcing specific jobs overseas we could erase a whole industry of job opportunity from the American people. Economists say the framework of the U.S. labor force has been changed due to past outsourcing of jobs by this country. The more outsourcing that continues the more our job forces structure will change. As a result, the American worker can no longer wait to be rehired into the same job or profession. Using their time while unemployed, Americans are retraining themselves and attempt to step into an entirely different career.
The Future
By all means, the people of Wall Street and the Republican Party will vote for Mitt Romney and elect a President who will re-enter the jobs market. But at the same time they will be demanding a radical reform to the labor market and to the U.S. economy. What we can expect from the Republican Party in the near future is a radical shift in national policy and policies toward government policies that will be both fair and effective. That would be a radical shift from a Keynesian view and a radical shift from one where the nation takes government’s jobs, pays the debt and spends its own money, and makes no sacrifices for their own benefit.
There are some real positive implications of this new dynamic in America.
On a temporary ground, I believe the future of the U.S., of course, is bright. We are now in the midst of a period where we have lost the only “waste of time” our democracy and economic system allowed us. The Great Recession, and the recent collapse in the stock market, have not only contributed to this disarray in American society, but they will also have contributed to the collapse of the “political economy” that is the economic system that keeps workers and workers, and the national treasury as well, dependent on government spending. America is now facing a crisis in which the government is using its monopoly power, and has become a very large provider of debt. The government is using its power for profit.
Moreover, government is not the answer to the problem. Instead it is what we are most likely to see, when a very bad economic situation calls for a new government program to address the deficit. But government spending can be a very useful tool for government to accomplish these goals, but not the full financial transaction that it usually does. We are still in the middle of a recession and this spending may not be going to solve the financial problem for too long.
I encourage our leaders to try to think carefully about what exactly to do, if at all possible, for this time next year. What will be done to reduce government spending should not include reducing government revenues either. But I don’t believe we can start with the idea that government is the end goal. And the Republican Party, while it has been a serious advocate of this new direction, may never be able to bring about the full scale restructuring of the economy that we need.
What is at stake for the next generation and its children, is a radical overhaul of the Democratic Party and its American policies, including President Obama’s “Contract with America,” to achieve a better labor and economic middle class for the millions of American workers. While there are many potential solutions to unemployment and short-term labor shortage, both of these approaches are now being advocated as the most economically viable solutions.
There are many key people that factor in on this issue of job outsourcing. First is the American worker. When most people think of jobs being sent overseas they think of factory workers or telephone operators, but the recent trend in the outsourcing of jobs has been higher paying jobs like accountants, computer programmers, or financial analysts. These jobs are considered white-collar jobs. The other big player in this issue is big business. As labor is offered at cheaper rates overseas, it is very tempting for businesses to take advantage of that resource. Saving money is a great way to raise profits and stock values of companies. This brings up the hardest part of this issue. Americans own stock in the big companies that outsource jobs, if the company does well then the stock does well and it helps the investor. The average family makes between 33 to 45 thousand dollars a year. People in this bracket generally rely on their job to provide income and security
The Bottom Line: While they are often the most well equipped to help this industry gain more profits, outsourcing can cost lives. This is why, for many companies, outsourcing is not as cost effective as previously thought, especially in Asia.
More From This Page:
Are outsourcing jobs for Wall Street and Intel more cost effective than on the job?
Why outsourcing has become a problem as outsourcing jobs move overseas
How American firms are dealing with outsourcing.
Why outsourcing in emerging markets is becoming a problem
Why outsourcing in emerging markets are getting bigger, cheaper, and less profitable
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Why outsourcing is bad for corporate profits