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Outsourcing As A Factor In The United States Recession

935 words - 4 pages

Jim is a upstanding, hard working, American computer programmer who recently lost his job to a man who doesn’t provide the correct code or patches for the computer programs he builds. This man is living in a far off country providing money that doesn’t benefit Jim or America, now Jim has a nice spot in the unemployment line. This is not how any good employee should be treated, but now many companies are dropping their good employees for cheaper foreign employees. Recent outsourcing is factor in the recent downturn in the U.S. economy.
Outsourcing is a complicated and a multifaceted subject that involves a “business[’s] purchase of parts or labor from another company rather than maintaining ...view middle of the document...

. . . outsource to the U.S. If we welcome Japanese manufacturing plants here, we can tolerate U.S. firms setting up plants overseas” (Gregory Okoro).
United States lawmakers need to be more welcoming to large international businesses that will help to restart the job market, but instead they tend to focus on small start-up businesses when they create economic policies. One of the largest factors of the economy is being left out: foreign companies in America. “Tax . . . burdens that drive up our energy costs have a tremendous negative impact on our competitiveness vis-a-vis foreign production and, ultimately, kill domestic jobs” (Jasper). A common quote from many lawmakers in Congress is “the mom and pop business.” Not many lawmakers talk about large multinational firms that would help to speed up the recovery from the recession and balance the negative effects of jobs leaving the U.S. Taxes and ever-increasing minimum wage has driven away many corporations that were looking to use a factory in the U.S. Even start ups have difficulties trying to produce goods in America. Sackaroo, a local shopping bag startup, was immediately challenged after its creation. The bag that Sackaroo made were cheaper to make in China then ship to America, but the owners, Sue Burnett and Paula Casey, decided to make the bags in the U.S. despite the increased economic pressure. The pressure cause by the decision to manufacture in America made it more difficult for Sackaroo to compete with the companies that had outsourced the manufacturing of their bags.
The unbalanced nature of United States outsourcing has helped to cause a lessening of jobs and the loss of necessary revenue that the U.S. desperately needed to sustain its economy. This loss of jobs coupled with collapse of the housing market and “the mindless deregulation of the...

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