Outsourcing is one of the largest concerns of modern day Americans. Both candidates in the most recent presidential campaign vowed to stop outsourcing and bring manufacturing jobs back to America, and President Trump has even made deals with companies to stay in America. These candidates used the widespread assumption that outsourcing is bad for the economy and the American workforce to play into the pockets of American voters. According to a report by the Pew Research Center, 80% of Americans believe outsourcing hurts American workers (Bahler). This assumption manifests itself from the numerous accounts of small manufacturing towns devastated from outsourcing. For instance, The Atlantic reported that in 1977, Youngstown, Ohio, “...lost 50,000
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In 1971, President Richard Nixon addressed the nation on Labor Day and said, “By exporting more goods and services, we will create more jobs for our expanding workforce.” Nixon did not know the scale outsourcing would reach today, but he believed that it would create more jobs for Americans instead of taking them away. Numerous economists today also cite outsourcing as the reason why Americans have a higher standard living and why America is more competitive in the global market. The theme of outsourcing in America and the contrast in views of whether outsourcing is good or bad for America begs the question of how should the United States react to the outsourcing of American manufacturing jobs? The trend of the American job sector, the state of the American economy, and America’s presence in the global market lead to one conclusion. The United States government should not interfere with the outsourcing of American manufacturing …show more content…
According to MIT Technology Review, “the manufacturing sector has gotten more productive, while giving fewer people jobs (compared to 1980s levels)” (Muro). Output in the manufacturing sector has tripled since 1980, but employment within the sector has dropped. For example, “in 1980 it took 25 jobs to generate $1 million in manufacturing output in the U.S. Today it takes five jobs” (Muro).The increase in productivity has been attributed to the rise of technology in manufacturing. Now companies are able to produce more with less people because of the integration of technology into manufacturing. The Economist magazine used car manufactures as an example: “since 1994 carmaking’s contribution to GDP—to which outsourced production by American firms does not contribute—has fallen by about 10%. But there are 30% fewer carmaking jobs” (The Economist). American car manufactures have lost some jobs to outsourcing, which accounts for the 10% decrease in GDP. However the 30% decrease in jobs is not a reflection of outsourcing, but the increase of technology within the field. In fact, technology has taken over numerous jobs the United States has outsourced in past decades. If the United States were to bring back the jobs outsourced, far more would come back than the United States outsourced. Investing money into an
In 1971, President Richard Nixon addressed the nation on Labor Day and said, “By exporting more goods and services, we will create more jobs for our expanding workforce.” Nixon did not know the scale outsourcing would reach today, but he believed that it would create more jobs for Americans instead of taking them away. Numerous economists today also cite outsourcing as the reason why Americans have a higher standard living and why America is more competitive in the global market. The theme of outsourcing in America and the contrast in views of whether outsourcing is good or bad for America begs the question of how should the United States react to the outsourcing of American manufacturing jobs? The trend of the American job sector, the state of the American economy, and America’s presence in the global market lead to one conclusion. The United States government should not interfere with the outsourcing of American manufacturing …show more content…
According to MIT Technology Review, “the manufacturing sector has gotten more productive, while giving fewer people jobs (compared to 1980s levels)” (Muro). Output in the manufacturing sector has tripled since 1980, but employment within the sector has dropped. For example, “in 1980 it took 25 jobs to generate $1 million in manufacturing output in the U.S. Today it takes five jobs” (Muro).The increase in productivity has been attributed to the rise of technology in manufacturing. Now companies are able to produce more with less people because of the integration of technology into manufacturing. The Economist magazine used car manufactures as an example: “since 1994 carmaking’s contribution to GDP—to which outsourced production by American firms does not contribute—has fallen by about 10%. But there are 30% fewer carmaking jobs” (The Economist). American car manufactures have lost some jobs to outsourcing, which accounts for the 10% decrease in GDP. However the 30% decrease in jobs is not a reflection of outsourcing, but the increase of technology within the field. In fact, technology has taken over numerous jobs the United States has outsourced in past decades. If the United States were to bring back the jobs outsourced, far more would come back than the United States outsourced. Investing money into an