Economics of Outsourcing

Outsourcing Opponants

Opposing Arguments to Outsourcing:


There are two main arguments against outsourcing; the first is that outsourcing has lead to the drainage of jobs that belong to the American middle class, the second arguments argues that those jobs outsourced leads to poorer quality in goods and services produced.

Outsourcing leads to a loss of American jobs and a declining standard of living.  According to the Bureau of Economic Analysis, already about 10 million jobs have been sent overseas since 2001 (Source). This trend has helped to fuel the high unemployment rates seen in the last few years which leads to a decreased standard of living in the United States. This situation is getting worse as we are seeing an increase in the number of white-collar jobs being sent overseas.  Jobs within the service sectors were previously perceived as being safe from international competition unlike the blue-collar jobs which have been outsourced for years.  However, all this is now changing as the face nature of outsourcing is shifting to include these industries as well.  In 2003 the United States ran a trade deficit in advanced technology products and services for the first time on record.  In 1997 the United States had a trade surplus in these same goods of $60 billion (Source).

The economic damage done to American workers in the form of fewer well-paying jobs is supposedly offset by the financial advantages coming back to consumers in the form of lower priced goods.  But with the loss of well paying jobs consumers are turning towards credit, and the end result is a weakened economy (Source)

Quotes Opposing Outsourcing:

"Outsourcing is an evil that has to be stopped," "Outsourcing has lead to the drainage of jobs that belong to the American middle class that should be stopped at any cost."
-Democrat John Kerry, in his recent election campaign.- (Source)

"The outsourcing issue is alarming for us. A lot of people are getting laid off because of outsourcing,"
-Matthew Biggs, the union's legislative and political director in an address concerning  outsoucring tech jobs.-  (Source)

Outsourcing forces Americans to "compete head-to-head with foreign workers" by "undermining U.S. workers primary competitive advantage over foreign workers: their physical presence in the United States" and "by providing those overseas workers with the same technologies."
-Ron and Anil Hira, in thier latest book, Outsourcing America.-
(Source)


Random Fact #1

In 2003 the United States ran a trade deficit in advanced technology products and services for the first time on record.  In 1997 the United States had a trade surplus in these same goods of $60 billion (Source).


Random Fact #2

According to the Bureau of Economic Analysis, already about 10 million jobs have been sent overseas since 2001 (Source).


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