The Pros And Cons Of Outsourcing
This level of outsourcing mostly involves the computer and technology industry, but as shown above it goes far beyond that. The million-dollar question seems to be just how does outsourcing affect the efforts to rebuild the limping American economy.
If outsourcing in these areas continues to be carried out by big corporations it will not leave enough jobs for qualified Americans. If a person does not have a job then they cannot purchase homes or spend money. When people can’t or don’t buy then producers can’t make money. With all the outsourcing being done the government also experiences a loss in income, which in turn could raise tax rates. Less jobs being maintained in the USA does not help with the contribution to our Social Security and Medicare programs. By outsourcing, not only skilled labor is lost but monetary gains too.
What must be understood is that service jobs do not pay as much as manufacturing jobs do nor do they create national wealth. On the other hand, they absorb wealth. Manufacturing jobs have by far the greatest impact on national economy, in terms of losing skills and the time taken to retrain such a force. Another thing is the loss of industrial infrastructure with the closing down of United States factories and then exporting the capital abroad. This money is then not available for the expansion of the United States