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Outsourcing And Its Effects Essay

1785 words - 7 pages

How is outsourcing affecting American Citizens, it is not only taking jobs away from us Americans but is also hurting our US economy. Outsourcing is when a company such as Apple sends jobs overseas to a country such as China and has factory workers there assemble the product for a much lower price. Yes this lowers the price of products but we have to take into account how many jobs this it taking from American citizens. Outsourcing jobs does lower the price of products but jobs should stay here in the US to build our economy and give American’s their jobs back.
The issue on outsourcing jobs is not only jobs being taken away from Americans but its hurting our economy. There are many other smaller issues that are created when jobs are outsourced. Items such as containers that the items are shipped in, it is cheaper to build a new container where the item is being built than it is to ship the empty container back. That creates a smaller issue of having thousands of unused containers lying around. (Winkipeida, 2013)
The larger issues with outsourcing are jobs for American’s being shipped overseas and American citizens being left with out jobs. If these Americans had the jobs that are being shipped overseas then more money would be in circulation and our economy would not only be able to recover from this rescission but grow. Money has to be in circulation for our economy to grow but if people do not have the money to spend then money will not circulate. Yes outsourcing jobs does allow lowering the price of products but you have to take into account what it cost to ship the products to America, which is fossil fuel being burned. If jobs were brought back to America that would allow more people to spend money on various things building our economy back up. (Ellis-Christensen, 2013)
Outsourcing mat not even be as profitable to companies as much as everyone thought it may not even be profitable at all. Companies overestimate the savings that will come from outsourcing by not taking into account what it cost to create the product out of house. Outsourcing also creates a negative effect on companies by losing expertise that is inherited via outsourcing. (Outsourcing Ruining America's Economy and Devasting U.S. Workers | Economy in Crisis, 2013)
The way companies are taxed when they outsource also affects us. When I company outsources they are taxed less causing the government to receive less money which ends up giving Americans less. That money could be used to building new roads, bridges, school, etc. Jobs such as factory workers would employ many of the unemployed in America. Even jobs for the middle class are now being outsourced such as computer and technology. Not having a job doesn’t allow people to buy homes, pay taxes, or even profit companies. Companies outsourcing are not always about providing humane working conditions. Outsourcing also may not benefit other countries economy. (Ellis-Christensen, 2013)
Outsourcing has grown dramatically...

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