University of Phoenix
Professor Olivia Miller
August 13, 2006
Outsourcing American Jobs to Foreign Countries
Outsourcing American jobs to foreign countries is slowly destroying our economy.
You hear it all the time on the news, and you read about it the paper. Unemployment is
rising, the cost of living is rising, and our economy is on shaky ground. So what exactly is outsourcing? Well in my opinion, outsourcing is a very selfish way for companies and businesses to save money. They send jobs to workers overseas who require less pay than an American worker does, in doing this these businesses of course make a larger profit on their goods and services. "Never have there been fewer business leaders willing to commit to the national interest over selfish interest, to the good of the country over that of the companies they lead." (Dobbs, 2004, p.2). I have to agree, for the amount of profit these companies that outsource make, they harm the greater good, our national interest.
If you had not heard about outsourcing before, now you have a good idea what it is. Now there are two sides to every story, so allow me to inform you about the people who support outsourcing, and why they say it is good for our country in the long term. Now the chairman of President Bush's council of economic trade Advisers, N. Gregory Mankiw said,"Outsourcing is just a way of doing international trade." (U.S. Newswire via Comtex, 2004). President Bush's 2004, economic report says basically outsourcing makes sense. The report (signed by President Bush) said that " When a good or service is produced more cheaply abroad, it makes more sense to import it than make or provide it domestically." (U.S Newswire via Comtex 2004). This all sounds like it makes a lot of sense. I mean wouldn't you want to save money also? We all want to spend less and make more, but where do we draw the line? In 2002, only about 4 percent of money directly invested by American companies overseas went to the developing countries that are most likely to account for outsourced jobs and most of that money was concentrated in manufacturing. (Drezner, Daniel W., The New York Times, Sept 29, 2004, p.A25). The Bush Administration holds seminars on how to outsource American jobs. Treasury Secretary John Snow has said, "U.S. Companies should outsource to stay competitive." (U.S. Newswire via comtex, 2004).
I do believe that the United States needs to be competitive with other countries, but I do not think our government should do this at our expense. When I say "our", I mean the working class people of America. I mean we could be competitive in so many other ways like, creating a better education system and turning out more educated highly trained people who are very productive. I think it is quite disheartening for Americans to believe that our government would rather pay people from another country to do the same job many Americans are qualified to do. It really is sad that we are the people that make up this great country, and yet we are considered expendable in so many ways. In Syracuse, New York, Carrier, the maker of air-conditioning and heating units, has closed two of its most productive and profitable factories and laying off 1,200 workers. Most of these jobs are headed to Singapore and Malasia. It is too early for many of Carrier's employees to retire; the average worker at the plant is only forty-nine years old. In a move to save jobs, New York State and the plant's union tried to dissuade Carrier form exporting the jobs to Asia by offering a $42 million incentive package. To no avail, the company is outsourcing these jobs. (Dobbs, 2004, p.8). Even with an incentive as massive as $42 million, the company still put these people out of work. That example took place in only one small part of our country. Just imagine how all these...