Outsourcing American Jobs to Foreign Countries

Outsourcing American jobs to Foreign Countries

WUI student

University of Phoenix

COM 110

Professor Olivia Miller

August 13, 2006

Outsourcing American Jobs to Foreign Countries

Outsourcing American jobs to foreign countries is slowly destroying our economy.

You hear it all the time on the news, and you read about it the paper. Unemployment is

rising, the cost of living is rising, and our economy is on shaky ground. So what exactly is outsourcing? Well in my opinion, outsourcing is a very selfish way for companies and businesses to save money. They send jobs to workers overseas who require less pay than an American worker does, in doing this these businesses of course make a larger profit on their goods and services. "Never have there been fewer business leaders willing to commit to the national interest over selfish interest, to the good of the country over that of the companies they lead." (Dobbs, 2004, p.2). I have to agree, for the amount of profit these companies that outsource make, they harm the greater good, our national interest.

If you had not heard about outsourcing before, now you have a good idea what it is. Now there are two sides to every story, so allow me to inform you about the people who support outsourcing, and why they say it is good for our country in the long term. Now the chairman of President Bush's council of economic trade Advisers, N. Gregory Mankiw said,"Outsourcing is just a way of doing international trade." (U.S. Newswire via Comtex, 2004). President Bush's 2004, economic report says basically outsourcing makes sense. The report (signed by President Bush)...said that " When a good or service is produced more cheaply abroad, it makes more sense to import it than make or provide it domestically." (U.S Newswire via Comtex 2004). This all sounds like it makes a lot of sense. I mean wouldn't you want to save money also? We all want to spend less and make more, but where do we draw the line? In 2002, only about 4 percent of money directly invested by American companies overseas went to the developing countries that are most likely to account for outsourced jobs - and most of that money was concentrated in manufacturing. (Drezner, Daniel W., The New York Times, Sept 29, 2004, p.A25). The Bush Administration holds seminars on how to outsource American jobs. Treasury Secretary John Snow has said, "U.S. Companies should outsource to stay competitive." (U.S. Newswire via comtex, 2004).

I do believe that the United States needs to be competitive with other countries, but I do not think our government should do this at our expense. When I say "our", I mean the working class people of America. I mean we could be competitive in so many other ways like, creating a better education system and turning out more educated highly trained people who are very productive. I think it is quite disheartening for Americans to believe that our government would rather pay people from another country to do the same job many Americans are qualified to do. It really is sad that we are the people that make up this great country, and yet we are considered expendable in so many ways. In Syracuse, New York, Carrier, the maker of air-conditioning and heating units, has closed two of its most productive and profitable factories and laying off 1,200 workers. Most of these jobs are headed to Singapore and Malasia. It is too early for many of Carrier's employees to retire; the average worker at the plant is only forty-nine years old. In a move to save jobs, New York State and the plant's union tried to dissuade Carrier form exporting the jobs to Asia by offering a $42 million incentive package. To no avail, the company is outsourcing these jobs. (Dobbs, 2004, p.8). Even with an incentive as massive as $42 million, the company still put these people out of work. That example took place in only one small part of our country. Just imagine how all these little towns and communities across the nation add up, especially in small communities where the local factory or plant is the main source of employment.

The makers of automobiles are a good example of a business where the desire to cut costs has driven jobs overseas. Early in 2004, Ford closed its plant in Edison, New Jersey, after more than Fifty-five years of producing cars and trucks there. About 300 to 900 workers were let go. Now that situation is just Ford, many other automobile makers have done the same thing. Employment in the U.S. auto industry has dropped by 200,000 jobs over the past four years. That is not just 200,000 thousand workers either, many of those workers have families and people who rely on them for support. The effects of outsourcing are far reaching. Along with the automobile industry, many other companies do not think twice about outsourcing to help them cut costs. It seems like outsourcing only effects the manufacturing companies, but it goes much further than that. In Clintwood Virginia, a small town with a population of 1,800, 250 out of those 1,800 jobs were being outsourced to India. Also the apparel industry is affected." Today, 96 percent of clothing production is done outside our borders." (Dobbs, 2004, p.16). Last year in North and South Carolina, thirty-seven textile factories were closed, due to outsourcing.

Seventy-one percent of Americans believed outsourcing was hurting the economy. Sixty-two percent of American workers believed the federal government should penalize companies that sent work offshore. (Drezner, Daniel, W., The New York Times, Sept 29, 2004, p.A25). I would have to be one of those Americans who feel companies should be penalized for sending jobs overseas. I do not think these companies or the government have any real idea what the consequences will be in the long term from outsourcing. I think right now they are