Outsourcings Effect on America Essay - 1970 Words

The purpose of this paper is to analyze and come up with a reasonable conclusion on the effects of outsourcing in America. From overworking, to a decline in the manufacturing sector, a high wealth gap, and finally the contribution of corporate lobbying are prime examples of the by-product that were created by outsourcing. Although free trade is the root of the problem, outsourcing is the most prevalent issue that it has created. Since free trade is now a standard and cannot be eliminated we will look into how outsourcing, since it can still be controlled, has affected America. First we will look at closely the statistics for outsourcing. According to Lori G. Kletzer statistics, 7.1 million jobs have been displaced since 1979. This is an†¦show more content†¦This is just one specific example of a company, but an example that is becoming more and more prevalent as companies seek more cost cutting measures to expand profits and improve the bottom line. The manufacturing sector that once was the pivotal and focal point of the American dream is being wiped out and transplanted at an astronomical rate. For example quoting the graphs from the future of manufacturing survey of 2009, companies themselves predicted that 25% of their products would be manufactured directly outside of the U.S. in 2012 and that’s up from 18% in 2009. This is a 7 percent rise in 3 years that will only grow larger as companies become more familiar and more efficient at outsourcing as a growing number of free trade agreements are reached and more information on the process of outsourcing becomes readily available and obtained. But where exactly are these jobs heading to? Again quoting from the graphs of the future of manufacturing survey of 2009, 59% of the companies said they will outsource their manufacturing to china by 2012 and that is up 9% from the 50% that said they did in 2009. 30% will outsource to India by 2012 up 13% from the 17% that responded they already do in 20 09. As former Senator Byron Dorgan states throughout his book, China is the leading destination for American jobs withShow MoreRelatedThe Effects of Outsourcing in America Essay1299 Words   |  6 PagesThis quote by Adam Smith, cited by Timothy Taylor, defines outsourcing as a task that can be done within a group, but is instead done by a third-party group for less money. While outsourcing service benefits American firms, studies show it takes jobs from middle-class Americans and adversely affects the American economy; however, other research proposes that outsourcing might actually benefit the American economy. 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