The Outsourcing of American Jobs Hurts the Economy on Every Level
Outsourcing in the U.S. has obviously enriched the heads of massive corporations. But for workers and consumers, outsourcing creates a multitude of problems. It poses a whole host of problems for shipping, communication and culture – but the biggest setback might be the loss in quality.
The capitalist market in the United States makes it nearly impossible for any successful company to avoid the lure of cutting American industrial jobs and shipping the work abroad. It has little to nothing to do with patriotism. It’s simply a matter of market competition, and when the means are so available, they are essentially unavoidable. By leaving our businesses with no protection and giving out full access to our markets, it makes no sense to produce in the United States.
Meanwhile, America’s most ruthless competitors are doing just the opposite. In China, for example, if a company wants access to those one billion-plus consumers, there is a minimum percentage of their parts and labor that must be produced in China. Unable to resist the potential gains in such a massive market, many companies move to China just to enjoy this benefit, while continuing to ship their products back to the U.S.
Also, in place of tariffs, more than 140 nations use a consumption tax called a value-added tax, or a VAT, to penalize imports and subsidize exports in order to meet their WTO obligations. The only developed economy on Earth that does not employ a VAT is the United States, and because of it, we are at a massive trade disadvantage.
To solve these issues, we must make it profitable for U.S. companies to employ workers in this country and produce goods. We should not have to worry about quality jobs leaving the U.S. and rely on foreign companies to provide employment. We need to control foreign trade, as other nations are doing.
By looking at both sides of the equation, it’s obvious that while we are gaining short-term profit and a few jobs, we are forfeiting our manufacturing and industrial base. Eventually, we’ll be left with few to no American-owned factories, leaving the nation completely dependent on other countries for work, resources and a fair standard of living.
These are the economic characteristics of a third-world country. These are the chains that our forefathers fought to shake off more than 200 years ago. That is a vision of the U.S. that no American is comfortable imagining.
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