America’s problems

           America is considered to be the major power in the world. It plays a very important role in the world economy. Though America is the major power, it is experiencing many problems including political, social, economical, environmental, financial etc., There are many social problems like the gay marriages, drug abuse, teen pregnancy, alcoholism etc. Today, the supreme power is going through the tough times and the economy has been affected tremendously. One of the problems among this is the outsourcing of jobs to other countries and the affect on the people in America.

The concept of outsourcing is not new. The companies have looked out for the cheapest labor around the world and outsourced the work accordingly like making plastic toys in Taiwan, making cars in Mexico and shirts in Malaysia[1]. Each and every problem has its own pros and cons. In the same way outsourcing also has its positive and negative effects[2]. Some people think that outsourcing helps the U.S economy and some thinks that it hinders the growth of the U.S economy and reduces the job opportunities. Frankly speaking, outsourcing is one of the issues that America is struggling right now.  America has lost one million jobs since 2001.[3]The white collar jobs like engineering, architecture and accounting etc are mostly affected by outsourcing and to be more detailed, middle class Americans are facing the problem much seriously. It does not affect only the middle class but it affects the nation’s economy at large. Due to the outsourcing of jobs, there has been lack of employment to the citizens of America. There are many reasons why the companies are choosing the wrong way and outsourcing their work. These reasons include lack of communication, poor governance, lack of misfit and lack of good policies by the government.[4] Debt among the private, corporate and public have become higher than ever before. When the middle class Americans are left unemployed, they have less money and in turn less money can be kept into the economy. By outsourcing of jobs to foreign countries the nation’s economy will be affected in areas such as social security, employment and even in retirement benefits.

Many people have lost their jobs due to outsourcing. President Bush reported to congress that outsourcing of white collar work and American factory jobs will stabilize and increase the U.S economy. But as the president Bush thought outsourcing is not a boon to the U.S economy rather it is a curse to the people and the economy. The international long shore and warehouse union disagrees the displacement of the American workers for the sake of the cheaper labor. Bush administration thought that outsourcing is good but during his administration nearly 3 million manufacturing jobs have been lost[5]. According to the Goldman Sachs, nearly 400,000-600,000 professional service jobs moved overseas. The skilled and semi-skilled workers are affected and many of the Americans are stripped away from their jobs. Outsourcing has a negative impact on the U.S economy. It has to be agreed that outsourcing leads to the loss of jobs in U.S. Because all the clerical jobs, white collar jobs and the factory jobs are being outsourced to other countries, but what is the condition of the U.S citizens who are minimally qualified, how do this people get the job when the jobs are outsourced?

These are nothing but the middle class people who are suffering a lot with the outsourcing of jobs to the other countries. With this the poverty increases, and it has nothing to do with the U.S economy rather than reducing tax revenues and consumer spending. The jobs are lost forever for the people who are at the low end of the food chain. According to the study made by the University of California-Santa Cruz, the losses in the manufacturing industry were studied. In the period of 20 years, it was revealed that in industries such as footwear, leather, textiles, clothing etc., one-third of the displaced workers could not find re-employment and those who found employment have experienced at least 15 percent of cutting in their wages. The situation is really worse that even the job of the middle class American is being outsourced.

           The U.S economy is negatively affected by outsourcing. Because of outsourcing, people do not find enough jobs. The position of the jobless person is really mean. He cannot spend money and cannot purchase homes. When the people do not have the capacity to buy, the people who manufacture or produce things also do not make money. Another major injurious effect of outsourcing is loss of income by federal, local and state governments. Due to this there are lesser contributions to Medicare, social security and lesser payroll tax receipts. Sales will get hindered and also other tax revenues. United States is facing many problems due to outsourcing. It is not only losing skilled labor but also losing monetary gains. According to the research data, by 2015, it is estimated that 3.3 million U.S jobs will be outsourced to other countries. That means nearly, 200,000 jobs are lost every year due to global outsourcing.

           Many people think that U.S economy is being benefited by outsourcing. But the fact is that, only the higher class of people like share holders, U.S investors etc are benefited but not the middle class people. Outsourcing is a threat to the U.S society and its citizens. The government rather than thinking about its profit, it also should think about the lower class people and how they are affected by the outsourcing and should provide necessary plans to overcome the present situation. Firstly, the citizens of our country should get employed and then only the work should be outsourced. Another supportive argument is that outsourcing should be done to the less developed countries so that they will be benefited and pay back their debts to the U.S. government. The supporters and the detractors agree on one thing that outsourcing could not be stopped completely. It is a very difficult issue to tackle. Everyone should come to a conclusion that outsourcing should only be done when the middle class people of the U.S are employed, well-paid and are provided with all the facilities including healthcare.

REFERENCES:

1. John cook, Paul Nyhan, Outsourcing’s long-term effects on U.S. jobs at issue, March 10, 2004.

http://www.seattlepi.com/business/164018_outsource10.asp

2. Effects of outsourcing, 2004.

http://www.cyfuture.com/effects-of-outsourcing.htm

3. Outsource outrage, Communications workers of America, 2005.

http://www.outsourceoutrage.com/

4. Negative effects of Outsourcing, 2008.

http://www.bizbrim.com/outsourcing/negative-effects.htm

5. Lindsay McLaughlin, Brian Davidson, ILWU warrior, An injury to one is an injury to all, Volume 5, Number 3, June 2, 2004.

http://www.ilwu.org/political/warrior/04/vol5no3.cfm

[1] John cook, Paul Nyhan, Outsourcing’s long-term effects on U.S. jobs at issue, March 10, 2004.

http://www.seattlepi.com/business/164018_outsource10.asp

[2] Effects of outsourcing, 2004.

http://www.cyfuture.com/effects-of-outsourcing.htm

[3] Outsource outrage, Communications workers of America, 2005.

http://www.outsourceoutrage.com/

[4] Negative effects of Outsourcing, 2008.

http://www.bizbrim.com/outsourcing/negative-effects.htm

[5] Lindsay McLaughlin, Brian Davidson, ILWU warrior, An injury to one is an injury to all, Volume 5, Number 3, June 2, 2004.

http://www.ilwu.org/political/warrior/04/vol5no3.cfm