Job outsourcing to china has cost so many Americans jobs. One of the states that took the hardest hit was california. California lost 560,000 jobs to job outsourcing(Katherine). Jobs is something that America cannot afford to lose any more of. America needs jobs to function, and people need jobs to …show more content…
Workers in america are losing so much money to the job outsourcing to china. The U.S. lost at least $245 billion in manufacturing wages in the last decade(Ray). People who lost their jobs to outsourcing jobs to china are in very bad condition because of this. The people that lost their jobs had to move on to lower paying jobs just so they can barely get by paying bills and buying groceries. That is the people who were lucky enough to find jobs to replace the one they lost. The people lucky enough to keep the jobs they had still took a big hit with their earnings decreasing by $1,400 a year. One thing that does not help Americans job wages is the fact that chinese workers are so low paid that American business owners have to lower wages to be able to compete with the prices of goods made and imported from china. Workers in china are also not given any benefits or rarely days off so that also affects the wages of chinese workers, which means more money has to be deducted from wages to compete. With all of those factors in play the reason why there are so many jobs outsourced is obvious that it is way cheaper to have the products imported from china. China's suppression of labor rights makes outsourcing more cost efficient for U.S. companies(Katherine). But the U.S. imports so many products that it cost more than we are earning for exporting products. The term that is used to describe this is trade deficit, which means …show more content…
The reason products imported are cheaper is because of the labor laws in china. China does not have to give their workers as much benefits as American companies have to give their workers. China does not have unions either to add on to the price of products. America also has to pay their workers more money than china has to pay theirs. One way that the government puts a stop to companies buying cheap goods and importing them. They use what is called a value added tax or VAT. A value added tax is a tax that the government puts on the imported goods that keeps the companies from making a huge amount of money from importing the cheap goods. Most nations use the VAT(Moreland). But it is still cheaper than companies getting the goods from inside the U.S. There are a few positives to the people having to move to lower paying jobs. One is that the jobs that are outsourced are creating cheaper imported goods for the people not making a lot of money from losing their job so they can afford to buy the cheaper products for them. The VAT is only for some select products that are imported. The second positive is that outsourcing increases countries standards of living and it benefits low income people and seniors that are on a fixed income. Another positive point is since there are skilled people in the poor nations, and their daily costs are much lower than ours, we can pay them enough and still economize. Since we are creating jobs in those countries,