Why Outsourcing Hurts United States Economy Essay

‘Is your job next?’ headline blared, followed by the disturbing preview of the article inside: â€Å"A new round of globalization is sending upscale jobs offshore. They include chip design engineering, basic research— even financial analysis. Can America lose these jobs and still prosper (R. Hira, 2008, p-1)?† The reaction of this news was swift and divided. Definitely large corporations that will be outsourcing will make huge profits in the long run but â€Å"what about the American citizens?† Jennifer, an American citizen, working for a big recruiter company, was sitting in her cubicle sorting out the resumes and suddenly manager calls in for meeting. She with her other colleagues went to the meeting room with a surprise. After discussing for a†¦show more content†¦The phenomenon has created major suffering for many American and as this outsourcing continues to spread, Americans will demand action (R. Hira 2008, p-95). The book also adds that scholars Ralph Goory and William Baumol have shown that even when the basic model of the economics are used trade does not make both the trading partners better off. The trading in one country will have a negative impact while trading in other country will have a positive impact. The country with negative impact will definitely affect its economy. United States economy being the world’s largest economy; historically, it has maintained a stable GDP growth, a low unemployment rate, a high level of research and capital i nvestment funded by both national, and because of increasing saving rates, increasingly by foreign investors. But offshore outsourcing has increased the unemployment rate dramatically in the decade. And so the economy worsened day by day. The truth is that many US companies lose the business as a result of offshore outsourcing. This has most affected the commercial real estate market. As the companies outsourced their work they no longer required employees and also the commercial building. Many commercial real estate industries think that the outsourced white collar jobs diminish the demand for the office space and many sites are sitting there as it is. For instance, one industryShow MoreRelatedOutsourcing Of The United States1355 Words   |  6 PagesInvestopedia, outsourcing is â€Å"a practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally† (Investopedia, n.d). Companies use outsourci ng to reduce costs and improve productivity. In the 1970’s and 1980’s was when companies first began looking for alternatives to increase their profits and increase the production of their products (Narayanan, 2015). Products were becoming to expensive to make in the United States and otherRead MoreOutsourcing American Jobs Hurt U.s. 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