Terms:
productivity:having the ability to produce goods and services
outsourcing: to obtain goods and services form an outside source
exploitative: to utilize for profit for self
While researching for my senior research paper, I came across an article about tech services for the West are shipping their jobs oversees. My topic is outsourcing of US jobs and I am already getting into it.
One of the most rampant problems with outsourcing is using the labor as exploitative. Many companies pay employees in other countries very low wages compared to what they would pay their American employees. These countries include India, the Philippines, and China. The main goal of outsourcing the jobs to other countries is how cost beneficial it is to the business especially in today's economy. There is one word that sums all of this up the best: productivity. Big businesses are mostly concerned with money and efficiency. During this recession, businesses are learning to do more with less.
Another problem with outsourcing is that it hurts the local economy of the countries the businesses are sending jobs to. "Local entrepreneurs need to serve local needs as well as the global economy. So what about the people in America who need jobs and cannot help our economy thrive? Is productivity much more important that the American people and the health of our own economy? I don't think so. If businesses create jobs here instead of sending them off to other countries this would help out the economy tremendously. More people would be employed and make money, thus causing more people to be able to spend that money. With the spending of more money this creates more consumer power which would cause an increase in want and demand. Even more people will be able to afford houses and cars, causing a growth in the housing markets and automobile industries. Of course this may not solve all the problems that came with the recession, but it will at least solve some of it.
Links:
"Going abroad for tech services". BBC News. Feb 21, 2002. Feb 21, 2010. http://news.bbc.co.uk/2/hi/science/nature/1833583.stm
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What about the benefits outsourcing can bring to other parts of the world? Many Indians are now finding jobs in call centers, and this is helping the Indian economy.
ReplyDeleteHey Δ,
ReplyDeleteI was wondering if people in America would even want the menial jobs that others overseas are forced to work? There are not many people in America's work force that will accept doing the menial jobs and have a good working ethic like showing up on time and other qualities that make a good employee.
I greatly ejoyed this article Kristine, being as I am looking for a well-paying summer job at the moment, this very much makes me think. So my question for you is what do you thinkg will heppen to our economy if all out jobs continue to be shipped off to other countries, like would it result in a long term economic failure or even the downfall of American society (dun dun DUH!)?
ReplyDeleteHey Kristine!
ReplyDeleteGreat article choice!. It was extremely informative, and you had some really thoughtful insights on the topic of outsourcing. I never really understood how outsourcing affected our economy until I read this. My question is: do you think that if the overseas business practices were more ethical, that would change the way people think about outsourcing?
"productivity?"
ReplyDeleteThis is an interesting subject and a very well written blog. I am interested in reading your research paper on this topic. So I am wondering: are there any American, or another country, laws or supreme court cases regarding outsourcing? And do the other countries not have minimum wage?
ReplyDeleteDisregard above :)
I agree with you 100% Kristine! The outsourcing of U.S jobs not only cripple our growth as an economy, but deny our citizens the right to happiness here in their own country. By keeping jobs here in America, people can have the opportunity to build their lives and work for something they never had access to before. Money. We all need. No one has it. Keep the jobs here!
ReplyDeleteThx!
Hey Twin!
ReplyDeletegreat article it was really interesting and informative too. Anyways you brought up some good points about the economy and how it could be doing a lot better by keeping more jobs availiable to the American people instead of sending them all overseas. Good job, and ofcourse any article thats about money is an interesting article to me. lol
yo Kristine :)
ReplyDeleteyour blogging was incredible and it had so much great information! I do agree that the economy would be more affective if it provided more local employment instead of sending people overseas. I think that providing more jobs can help people experience the american dream in their country.
Thanks to everyone who commented on my blog! Okay now for answering questions:
ReplyDeleteEmma, If our corporations and businesses continue to keep shipping our jobs overseas the American job market will be in a world of hurt. There will be much more competition for the jobs that are here and most likely a hike in the unemployment rates. The economy will probably not get better for a while, but if most of our jobs go overseas it would take a plumet. As for a whole downfall of American society, probably not (hugh sigh of releif).
Cousin Camille, I would definatley think that if the outsourcing business practices were more ethical people would support it more. But also the recession and the high unemployment rates are factors in the negative outlook. However, not all outsourcing jobs have bad practices some are legit.
Nieves, As for minimum wage in other countries every country is different and depends teh country a business is outsourcing to. The minimum wage of India is 80 rupees this is $1.74 in US dollars. So this is really low. As for supreme court cases or laws ther is the Employee Retirement Income Security Act (ERISA) of 1974 which calls for companies to set a minimu wage standards, establich pensions,a form of healthcare, and protection with plan all for their employees. I do not know if this includes the employees for overseas but I think it should. I hope this answered your question.
Ms. Spengemen, yes there are benifits to outsourcing. Some of these include more cost savings,increase of profit for the company, and the whole US economy because it is able save by paying less to the workers overseas. The company also gets to diversify internationally. For the businesses overseas this means more business opportunities are created. These all have something in common. They have more to do with the business itself than the people who are helping it run. These benifits are not helping the people. The people are busier serving the economy than the people who created and keep the economy running. I think that is why I have such a hard time with the idea of outsourcing.
I hope I answered all of your questions!