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Will American Factories Ever Resurface - Term Paper Example

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American factors have laid off hundreds of thousands of workers due partly to the recession and mostly because these companies find it cheaper to outsources their manufacturing to other Asian countries, where the same work is done at a much cheaper cost. …
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Will American Factories Ever Resurface
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Download file to see previous pages There is a lot of heated discussion and debate over the issue of outsourcing. Proponents insist that it is the best thing for the US economy, opponents contend that it is not so, and this is causing massive employment. Advocates are of the view that outsourcing will save money for corporations, will enable new possibilities and would lead to Americans to get their hands on executive jobs. They feel that outsourcing exercise brings significant advantages to the American economy by making imports cheaper and exports more costly for other counties. Opponents of Outsourcing: Those who are not in favor outsourcing contend that hiring people from other countries has a negative effect on the US economy and deprives hundreds of thousands of workers in the US especially skilled and semi-skilled workers. Poor Americans who are willing to do jobs that do not need many skills, are finding it very cumbersome to get jobs, and poverty isn’t really helping help the US economy, instead its reducing consumer spending considerably and also the amount of tax collections. They say that the lost jobs will never be recovered and this is a permanent loss to the American and the economy. This does seem valid and everyone knows that outsourcing does cause people to be jobless in America, especially such jobs that have very few or no qualifications, education or technical skills, because job loss is not only confined to people limited skills, but also jobs of skilled nature are now outsourced to other countries where manpower is cheaper. The reason that outsourcing hurts the US economy is quite controversial. For those who support outsourcing for political reasons, outsourcing will on the whole have a constructive effect on the American economy, since it is cheaper and saves a lot of money for corporations, opens up advantageous chances for greater free enterprise in the US, and would have the maximum number of Americans working at higher level executive jobs. Opponents are adamant that the hiring of overseas workers at jobs that can do done by semi-skilled or skilled laborers. The way that companies that outsource save taxes, outsourcing will diminish taxes paid by corporation and therefore also decrease spending by the governments, both federal and state. Both sides on this issue have some valid arguments. Outsourcing has become the major cause of joblessness in America and it greatly affects people with only limited skills. On the other hand the fact that tons of skilled labor jobs are being offered to foreign countries can also not be ruled out. Benefits of Outsourcing: People who favor outsourcing say that reducing the operating expenses of corporations leads to creation of new and better jobs. There are many government departments and agencies that outsource their work load, enabling them to save tons of dollars, which benefits the US economy and reduces federal spending. This is for those who state that paying workers less wagers would mean the companies would be able to produce more products with considerably less expenditure and this saving could be passed on to customers. Lower prices would enable more consumers spending, and would enable companies to generate more jobs for employees working in America as they usually pay those workers less who work outside the States. Outsourcing is a very controversial issue, but it is an issue all the same. Virtually no one agrees that outsourcing can be completely stopped (Wise Geek 2012). Many US citizens feel that companies are dodging taxes and cheating the US government of revenues and suggest companies should be taxed more for outsourcing, and given added incentives if they decide to keep their worker base in ...Download file to see next pagesRead More
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