Outsourcing. this paper is about the negative effects of outsourcing on the USA. has citations and references. short and to the point

Essay by coderedsju1College, UndergraduateA, December 2004

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Outsourcing is an unfortunate byproduct of a transition from a local to a global economy. During the first half of the twentieth century, jobs were given to all American workers. Now in the year 2003, large corporations will do anything they can to maximize profits, and minimize expenses. Outsourcing does not stop there, many companies are now importing cheap labor from foreign countries. The Logic is simple, if it can be done cheaper somewhere or by someone else, then send it that way. While this is the most profitable way of doing business, it affects the American economy in negative ways.

"Why do it in Fairfax, Virginia when you can do it somewhere else cheaper?" ( Fording). The thought process is very simple and makes complete sense in an economic situation. American workers charges $10 an hour, and Indian workers charge $2.50, four Indians could be hired for every American.

This is makes for ludicrous amounts of earnings and hardly any spending. 3,275,000 Americans lost their jobs due to their factory being shut down, moved elsewhere or their position abolished (Census, No. 590). This exportation of work has also weakened labor unions significantly. Unions don't have as much powerful and people are less inclined to join. In 1983, 16.5% of private sector workers were members of a union. Back then, the Union could protect its members with strikes and demonstrations. In 2000, only 9% of private sector workers were unionized (Census, No. 637). This rapid decline shows the waning power of the union. Money seems to be the primary drive for corporations to outsource, it may not be the only cause. "Businesses follow what other businesses do. So as more businesses do it, more will be sucked in to thinking it's the right move" (Fording). Large scale corporate conformity, reduces...