Title: Outsourcing: The negative effects
Headings: Outsourcing: The negative effects
Outsourcing: The negative effects
Content: Outsourcing: The negative effects
Outsourcing: The negative effects
Outsourcing is negatively affecting businesses in the United States and results in high unemployment, loss of income, and loss of competitive advantage. Over the last 31 years, Economists and politicians alike believed that the United States would be successful if we just simply focused our efforts in research and innovation, while countries like China and India were to do all the manufacturing. Supporters of this economic model are misleading themselves if they feel that manufacturing of technology, mechanical and medical products have little to no value. If the United States is not manufacturing the technology they need, then they are buying it from countries that are, leading to a trade deficit (Nothhaft)
The practice of outsourcing has greatly affected employment aspects in the United States. American companies have hired people from foreign countries tha.t are highly skilled, but were willing to accept lower salaries, resulting in hundreds of thousands of American people being without a job, in particular the semi-skilled and skilled workers. The effects of outsourcing has made it even more difficult for American people who are at or below the poverty line that willing to do minimally skilled jobs, to find employment. Outsourcing can lead to levels of poverty that hasn’t been experienced since the Great Depression of the 1930’s, resulting in reduction of consumer spending and tax revenues (Saleem). Jobs that are being outsourced to developing countries such as China and India must abide by U.S. safety laws and regulations, and this is where the issues with outsourcing begin to take shape.