Effects of Outsourcing American Jobs to Foreign Countries

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Effects of Outsourcing American Jobs to Foreign Countries

The nation's economy will be adversely affected in areas such as unemployment, Social Security, and even retirement benefits, by the outsourcing of American jobs to foreign countries. This country needs to take a look at some of the ways that outsourcing to foreign countries has affected those who have already lost their jobs due to outsourcing. An article by the Washington DC Office of Public Policy says that, "Some experts argue that offshoring [outsourcing] provides access to good middle class jobs that would not be available in developing countries" (2004). The article also states that, "India and China are the leading destinations for outsourced jobs and they are now home to the biggest overseas operations of some U.S. companies" (2004). If this is true, I thought China and India were already developed countries. That means we are aiming for the wrong countries where the poverty level is not the greatest, or the country is developed already?

What will be next? Outsourcing our president? That may sound a little extreme, but to those that have already been effected by the outsourcing of their job to a foreign country, that may be what they are feeling. So far, it has been mostly technical jobs that have been outsourced, but industrial jobs are following closely behind.

Letting the jobs that should be here, in America, be done in foreign countries, takes the jobs away from someone else. When people are out of work they cannot pay their bills. They get into debt trying to make ends meat, so to speak. They start charging everything on credit cards or getting home equity loans. They lose their house because of debt. When people owe so much money, how can they pay it all back?

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A person who looses his or her job goes on unemployment, if he or she has enough time in to be able to draw unemployment, then when he or she cannot find a new job they go on welfare. (Our tax dollars at work).

When things are made in foreign countries they have to add extra shipping charges to the products that are sold here in America. These products could easily be made here, in America, and those extra shipping charges would not have to be added. When a person has lost his or her job, because of outsourcing to foreign countries, how can that person afford to spend the extra money to pay for something that was made in a foreign country? Therefore, when people stop purchasing things, which are made in foreign countries, it just does not make sense to have them shipped in and charge more for them.

Sooner or later the outsourcing, or offshoring, will affect our Social Security. When too many people are out of work, due to outsourcing, there is not enough money going into the Social Security funds. Our society is already worried about the effect the "Baby Boomer" generation is having on Social Security funds that are available. These "Baby Boomers" have already started drawing the funds from Social Security and they have worked so hard to be able to draw these funds. In an article by Congressman Charlie Norwood he states that for the "Baby Boomer" generation, "by 2013, payroll taxes will no longer be sufficient to cover monthly payments." Norwood also suggests that, "By 2032, the trust fund will be exhausted and Social Security will be unable to pay the full benefits older Americans have been promised." So, when our jobs are outsourced out of the country and the money is not going into the Social Security funds, how do these people get any money? When there is not any money to get, people do not get paid.

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When all the good jobs with benefits, like retirement or healthcare, get outsourced to foreign countries there will not be any left for our people in the nation. Most independent places cannot afford to pay for benefits. The people have to purchase their own benefits like affordable healthcare and 401 K Plans. When people pay for the benefits they need it takes away from the family income. Then with less income the family cannot spend as much to purchase products that are made in other countries, which should be made here.

Next let's discuss retirement benefits. When a person has a great deal of retirement time built up, like 20 years with a company, and that person looses his or her job, to outsourcing out of the country then that person has to find another job and start all over to build up enough time to be able to retire if that person does not have a 401 K Plan that can transfer job to job. People are starting to lose faith in our country when it is so easy to lose their job to outsourcing to foreign countries.

We will have a weakened job market if the outsourcing of American jobs to foreign countries is allowed to continue. A weakened job market means a great many people are out of work at the same time. In a brief article that was written in (HR Briefing, 2003), a study predicted a "loss of 3.3 million U.S. jobs - or $136 billion worth of wages - as a result of offshoring during the next 15 years. That is a great many jobs. People everywhere will not be working. All that money will be going to a country that is not ours. So, who does it truly hurt? The American families out of jobs will be the ones to get hurt.

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(Russell Ruggiero and Rex Brooks, 2004), under the heading, Analysis, say that, "One cannot blame