Outsourcing in America
Americans are crying foul on the way their economic future has been put at risk. American corporations have literary opened a Pandora’s Box, in their quest to reduce the expenses on getting some specific tasks accomplished. This is at the expense of the Americans who, day by day are losing lucrative jobs to foreigners who are experts in the various fields. In the early 2000, the media was flooded with reports on how the US was slowly doing itself an injustice by unleashing some of the best jobs offshore to China, India and China, where the cost of getting the job done was much cheaper. The government’s acknowledgement through Dr. Gregory Mankiw, who used to be President Bush’s Chief Economic Advisor in 2003, raged the storm even further. His assertions that exporting of very high value jobs was productive for the country were unsettling. This essay seeks to explore how Americans are highly disadvantaged by the outsourcing evil that has struck the US like a plague. Moreover, the various options available for the country to redeem itself are further discussed and examined deeply. As peter DeFazio puts it “We are entirely outsourcing United States’ industrial base to China. Economic implications along with national security issues are a concern”.
Outsourcing has become a reality that has posed a dilemma in the USA. Experts indicate that the phenomenon is unstoppable and can never be ignored. More than 14 million white collar jobs are vulnerable of being outsourced. It should be noted that these are high paying jobs with as average salary of $31, 720. By the end of 2005, more than 800,000 jobs had been moved overseas from the US. Various fields have been adversely affected. Notably, any work that can be sent over the wire is likely to be outsourced. Some of the fields include information technology, newspaper reporting, call-center operators, legal services, engineering tasks and accounting. Moreover reports have indicated that more than 2 million jobs in the banking and securities sector are likely to move overseas in thus. There are also more than 700,000 customer service jobs that moved to India from the US by 2008. This has increased incidences of highly sensitive information on specific personal finances and medical records being handled in foreign soils away from the US (Hira & Hira 8).
A number of top US corporations have fully embraced this concept and are now actively laying off their staff to outsource cheaply overseas. Venture capital firms have become a reality and are forcing their specific start-up firms to embrace outsourcing as much as possible. The main concern, however, are the implications of this in the near future. The drop in interest of technological professionals is another worry. This is due to the fears students have that they are likely to miss a job due to outsourcing. Computer science enrollment dropped by a whopping 20% in 2003-04 academic years. This is a potentially dangerous trend as the US struggles to maintain its position as the superpower and the economic power house of the world. This is how easily the US has killed its own, the levels of unemployment are climbing by day and many young and energetic people are being laid off for the cheaper source labor offshore (American Institute of Planners 325).
Interestingly, the US government is totally involved in the pursuing of policies that encourage and accelerate outsourcing. This is achieved by the undermining of the US workers’ primary competitive advantage of their physical presence. The guest-worker policy has further accelerated this, where US companies are legally allowed to bring professionals from other countries to the US to work on site cheaply. The transfer of knowledge to the workers is another aspect of outsourcing. The knowledge gained is later on used by foreigners in their own countries and start competing favorably with the US. The World Trade Organization and trade agreements are further being used by trade representatives to make outsourcing even easier to accomplish. This shows how deeply this evil has eaten into the US and currently looks unstoppable. The federal state and other local governments are outsourcing government services and further showing the way for the private companies that are busy spearheading this outsourcing movement. Moreover, this has raised the question on whether the US government is justified morally to spend millions of dollars in creating jobs offshore, whereas there are millions of unemployed people in the US soil (French 21).
- Quote paper
- Raymond Cook (Author), 2012, Outsourcing in America, Munich, GRIN Verlag, https://www.grin.com/document/215671