Title: Outsourcing Overseas and its Effect on the US. Economy
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Content: In contrast, cost in Eastern Europe averages $8 per hour for manufacturing labor and, in East Asia (excluding Japan), $13 per hour. Manufacturing labor in the Philippines averages under $2 per hour, and in Brazil the average is $8 per hour. Outsourcing promotes globalization, which is a new source of growth for U.S. businesses. These figures are based on the 2011 U.S. Bureau Labor Statistics hourly direct pay data, www.bls.gov/web/ichcc.supp.toc.htm#table_2. One of the most pointed-out arguments against outsourcing is the concern of jobs being lost in the U.S. which are then transferred to foreign countries. Companies that outsource to foreign countries tend to hire less skilled workers whenever the work does not require a high skill level to manufacture products. This results in Americans holding higher skill level jobs. It is argued that outsourcing takes away immediate jobs for unskilled U.S. labor. Although this can be true in some instances, the labor employment moved to foreign countries tends to be jobs that pay at a more indigent level by U.S. cost of living standards, leading to impoverished lives to those in the U.S. holding such jobs. Poverty does not benefit the U.S. economy since poverty reduces consumer spending and tax revenues, and increases certain social costs.