Jobs, Prices, and Supply and Demand

Essay by elvis21University, Bachelor'sA, August 2008

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In the world economy there are many products on the market (Colander, 2004). Each niche product that is sold on in the US market has one thing in common, the American citizen wants it cheaper than they bought if for. How have the Wal-Mart’s, the Ford’s, the HP’s, and the Dell’s of our country accomplished this task? Buy utilizing, sub contracting, and moving their jobs outside the boarders of the United States. This has opened up cheaper products to moderate and higher economic income levels and left holder of the moved jobs still screaming high prices. The exporting of jobs has become a victim or an outcome of supply and demand.

The United States is the larges consumers on the globe. The citizens of the United States have a very large voice and will get what they are ask, for fear of their money going else where (Economic overview, 2004).

So when did this being? An industry expert Robert Reich says it has three possibilities (Reich, 2007). The first was the ability of corporations to break the union in the 1980’s. The example that Mr. Reich points to with union breaking is that corporations were able to, over time, lower the wage of the worker in turn creating products at a cheap price. The emergence of technology has given the consumers a choice now (Reich, 2007). Americans now can log onto the internet and shop all over the country and shop and compare for the lowest price.

Automaker Ford saw a migration to the south in the early 1990’s. Cheaper skilled labor was able to push production out of the state of Michigan and go places such as the Southeast United states and countries like Mexico (Hachiya, 1995). The demand for cheaper cost of vehicles forced Ford to move to...