Outsourcing U.S. Labor

Paper Summary:

The paper notes that outsourcing American jobs benefits consumers with lower prices of goods. The paper argues, however, that this small benefit comes at the cost of American jobs sent overseas, US production capacity relocated to cheaper markets and the economy weakened by the net loss of jobs and capital. The paper argues further that outsourcing jobs and production undermines the US economy and makes it dependent on foreign markets in the developing world. The paper asserts that measures should be taken to protect jobs and production capabilities and limit the degree to which corporate greed can destroy the economy.

From the Paper:

"One common trend in the modern, globalized economy has been the persistent outsourcing of US jobs and production to other--usually less developed--nations. In an effort to maximize profits by decreasing the cost of production and labor, many US companies have actively downsized their US labor force and shifted the equivalent jobs to labor markets and firms in the Third World. Nations such as China and India have notably benefited from this tendency. For the United States, however, despite the claims of supporters, outsourcing of jobs and manufacturing to the Third World has had a tremendously negative effect on the national economy. Outsourcing labor and production to foreign countries weakens the US economy and undermines national esteem by increasing unemployment and eliminating the nation's productive self-sufficiency. "

Sample of Sources Used:

• Gomberg, T. (2005, January). Globalization: a double-edged-sword? Contract Management, 45(1), pp. 45-46.
• Penny wise and dollar foolish. (2004, March 8). National Review, 56(4), p. 3.

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