The Replaceable Worker: The Impact Of Outsourcing On The American Economy

1631 words - 7 pages

One in every nine American jobs is vulnerable to becoming outsourced. That adds up to over 14 million jobs in total.(Hira 2). The guarantee of protection from the approaching economic turmoil is not certain. According to the Merriam-Webster, outsourcing may be described as obtaining goods or services from an outside or foreign supplier. The origins of outsourcing can be traced far back as the first Industrial Revolution, when business moguls began to seek out new methods of increasing revenue while minimizing expenditures. By the same token, the business tycoons of the twentieth century continue to practice the same ideals of increasing profit per capita. Moreover, these techniques have evolved to evoke the epitome of the outsourcing vitiating today’s American economy. Although outsourcing may be viewed as a tactful business strategy by some entrepreneurs, outsourcing has underhandedly elicited an irreversible harm on today's economy by causing escalating unemployment rates, as a result of allowing avaricious corporations to take advantage of underpaid foreign labor, which has promoted globalization.
Outsourcing has single handily wounded the United State’s economy by precipitating job loss across the nation. Unemployment continues to encounter ascending rates as various corporations continue to exploit the paradigm of outsourcing. As a consequence, the persistence of high unemployment rates retards economic recovery (Goldberg 1). Notably, the employment rate is a direct reflection of an economy’s health. In order for the economy to strengthen, contributions such as the purchasing of goods and paying taxes need to be obliged by the citizens. Regrettably, the unemployed with no income can not make a contribution to the economy. Instead, unemployment insurance presents itself to the unemployed, which in return creates a decrease of currency surging in the economy. Ultimately, creating a problematic drainage that continues pulling the economy down in a never ending cycle of decreasing revenue and dwindling employment rates. Whereas a few handful, may argue outsourcing has led to the production of affordable goods for low income families in the U.S, the negative damages imposed on the American economy are far more crucial than a few cheap, Malaysian made, pens.
Outsourcing sanctions U.S companies to employ impoverished laborers in the third world, hence eradicating jobs in the U.S markets. Unfortunately, the North American Free Trade Agreement (NAFTA) allows outsourcing, which, its Republican and Democratic proponents argued, would lead to mutual benefits and gains (Hira 14). Under the NAFTA, America would supposedly expand its markets while helping raise the international standard of living, as well as supporting democracy. Additionally, America would allegedly create regimes that share the same values, thus improving security and helping general populations procure legitimate governments (Hira 15). Under those pretenses, outsourcing showed signs...

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