The Effect Of Outsourcing On Middle Class American's

2143 words - 9 pages

The Effect of Outsourcing on Middle-Class American'sThe American middle class is in danger of becoming defunct by the outsourcing of jobs to foreign countries. Jobs that Americans once considered stable long-term employment are now being outsourced at a rising rate. If this trend continues, America could be the next third world country. How has this happened? What can the average American do about it?Outsourcing is not a new concept. As early as the 1900's the US Government was outsourcing jobs to the private sector to help cut costs to tax payers. Over the years, this practice was found to boost the economy by creating new jobs and keeping the unemployment rates low. According to the Bureau of Labor Statistics, the unemployment rate in 1944 was only 1.4 percent. Business was growing strong and so was the economy. In the 1970's and early 1980's, with operating costs rising, business began looking to outsourcing to save millions of dollars. Hundreds of thousands of jobs in the manufacturing sector were outsourced to third world countries. The unemployment rate, according to the Bureau of Labor Statistics, went from 3.5 percent in 1969 to as high as 9.7 percent by 1982 (2006, p. 1). Big business had solved their overhead cost problem by sacrificing the American worker. Blue-collar workers were left to fend for themselves either standing in the unemployment line or retraining for new jobs, all at their own expense.Over the years, the blue-collar workers that had lost their jobs were retrained into white collar jobs in the service industry. The service industry, like the manufacturing industry of the past, was growing at an increasing rate as was the U.S. economy. As history repeated itself, this burgeoning industry finds with increased growth came the increased cost of operation. Businesses once more are using outsourcing to balance their corporate budgets at the expense of the worker. Linda Myers found, "from January through March of 2004 that 23,296 jobs went to Mexico, 8,283 to China, 3,895 to India, 5,511 to Latin American countries other then Mexico, 4,419 to Asian countries other than China and 2,933 to other countries" (2004). Ellen Heffes finds that 2 million financial sector jobs will be outsourced by 2009 (2004). Alan Garner's economic review (2004, p. 3) states that outsourcing in the service industry has increased to about 200,000 to 300,000 jobs annually and the loss of jobs is projected to reach 3.4 million by 2015. Alan Garner also states that "about 14 million service jobs were at risk of Offshoring in 2000, while about 96 million service jobs had a low risk of Offshoring (2004, p. 3)." Linda Myers said, "we know we're not capturing all the numbers because companies are wary about the negative publicity and often don't share it fully with reporters" (2004). The former blue collar workers of the 70's and 80's, who retrained for the service industry, are at risk of losing their jobs all over again. This crisis comes for them just as...

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