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Why Did We Lose Our Jobs?

Updated on March 28, 2010

Outsourcing Jobs to Foreign Coutries

Have you fallen behind on your credit card payment and had a foreigner call you to ask if you can pay today? If you cannot, they want to know why. You should have told them that some of our smart elected officials decided that you and your co-workers needed jobs and we Americans did not. Some said that outsourcing jobs would not hurt the United States, but the process is helping other countries. This is the new way to conduct international trade eventhough it could be a problem for American workers and the American economy. You would think that the leaders of this country would try to find ways to create jobs for the United states through international trade instead of taking them away.

Outsourcing jobs to foreign countries is good for some and bad for others, but when all is said and done, outsourcing is more harmful to the United States economy than it is good. Countries like China, India and Ireland are benefiting from the outsourcing of United States jobs, while the United States is being hurt by this process. Before I checked to find out why we are losing our jobs, I thought we were only losing manufacturing jobs to Mexico and China. I found out I was way off base, if a job can be done over the phone, it can be outsourced.

Corporations are hiring foreign engineers, instead of Unied States engineers for research and development work. United States corporations are forming companies in foreign countries. Instead of moving a single plant, United States corporations are forming entire divisions in foreign countries. Most of the companies that are moving their jobs to foreign countries, are doing so because of the economic impact outsourcing has for the company and their shareholders. Companies are saying, they can hire engineers in other countries for about 25 percent of what they would have to spend for them in the United States. Companies are also saying, it is more profitable for them to establish their own subsidiaries than to simply hire engineers in other countries (Ramos, 2003).

When we examine the facts, we will have to agree that outsourcing is good for some and bad for others, but when all is said and done, the process is more harmful to the United states, than it is good. Outsourcing jobs to foreign countries benefits large corporations. United States companies save money in labor costs, insurance for employees and a variety of other employee benefits. These savings are only beneficial to the owners, executive officers and shareholders of large corproations. People in these positions try to make everyone in the United States think outsourcing is good for the entire United States economy.

The large corporations are saying, outsourcing jobs to foreign countries is good for the economy, because they can produce goods cheaper in foreign countries, therefore sell the goods cheaper in the United States. I agree, they can probably sell the goods cheaper in the United States, since they save money in labor costs, etc., but without jobs, how are Americans going to buy the goods? If Americans can not buy the goods, eventhough they are cheaper, how is this good for the United States economy?

 

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    • James A Watkins profile image

      James A Watkins 

      8 years ago from Chicago

      You are welcome. It takes time. I would get out there in the community and introduce yourself as much as possible to folks who write stuff you like. You know how it is, people like people who like them. :)

      Merry Christmas!

    • keywc58 profile imageAUTHOR

      keywc58 

      8 years ago

      Thank you James, I didn't think I would ever get a comment.

    • James A Watkins profile image

      James A Watkins 

      8 years ago from Chicago

      There is a lot of truth here. As I wrote in my Hub "Unions Killed Michigan" had the unions not driven manufacturing out of the country with their anti-Capitalist stance, corporations would not have been threatened by Toyota, Sony, et al. in the first place. That is no defense for outsourcing call centers and engineering contracts but that is where it started and now it has snowballed.

      All that said, this is a mighty fine Hub that is well written. Thank you and welcome to HubPages.

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