An American Economy Essay

By 2004, more than 80 percent of U.S. executive boardrooms will have discussed offshore sourcing, and more than 40 percent of U.S. enterprises will have completed some type of pilot or will be sourcing IT (information technology) services. In fact, some of the biggest firms in the United States have been seriously discussing outsourcing recently. One of these companies being IBM, the world's biggest computer maker, discussed saving about $168 million beginning in 2006 by moving thousands of programming jobs overseas, according to internal information provided. U.S. businesses, battered by the recent three year bear market in stocks and an economy struggling to find its footing, have already developed a taste for super cheap labor in developing countries, where workers are increasingly better trained especially if they've spent significant time working in the United States on temporary visas. The impact of overseas outsourcing could be significant; many economists doubt the trend is big enough yet to disrupt the broader U.S. economy. Imports of business services account for less than 1/20 of 1 percent of gross domestic product, the broadest measure of the nation's economy. At the least, it's not doing much to end the longest U.S. labor-market slump since World War II. More than 9.3 million people are

The United States economy is racing ahead at dangerous speeds, and it may be too late to prevent the return of widespread inflation. Ideally the economy should move ahead gradually and grow at a steady manageable rate. Mae West once stated “Too much of a good thing can be wonderful” and it seems the U.S. Treasury Secretary agrees. The Secretary announced that due to our increasing surplus and booming economy, instead of having an outsized tax cut, we should use the surplus to further pay down the national debt. A tax cut, though most Americans would favor it initially, would prove counter productive. Cutting taxes would over stimulate an already raging economy, and enhance the possibilities of an

It has become increasing undeniable that the process of globalization is present, and a strong force in the international market. “Globalization”, according to the Merriam-Webster dictionary, is defined as, “ the development of an increasingly global economy especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets”. Before the start of the 1990’s, the United States had little competition in the international marketplace, and was as strong as ever. Globalization has opened the international market to cheap land and labor outside the United States. Corporations and businesses have outsourced many jobs from the United States labor markets, at the expense of United States labor. One of the biggest questions facing America today is if it is ready for Globalization. I believe that we are not ready for a variety of reasons, but there are a few that stand out in my mind. The top factors concerning the U.S. are ineffective nature of Congress, U.S. national debt, and overseas outsourcing.

Outsourcing emerged on the financial arena during the 1980s and has since then been spreading. Outsourcing production was furthered with the process of globalization which provided a new component leading to the strengthening of resources, skill and labor specializations across the world. The process of outsourcing is using the skill and abilities of a third-party to accommodate society on the foundation of labor. As stated earlier, it was during the 1980s that the process kicked off mainly due to the efforts of corporations when they began to hire labor forces across the world. Even though outsourcing has come out from its developing stages, there are still following effects on the US economy.

‘Is your job next?’ headline blared, followed by the disturbing preview of the article inside: “A new round of globalization is sending upscale jobs offshore. They include chip design engineering, basic research— even financial analysis. Can America lose these jobs and still prosper (R. Hira, 2008, p-1)?” The reaction of this news was swift and divided. Definitely large corporations that will be outsourcing will make huge profits in the long run but “what about the American citizens?”

The news mediums, television, radio, print, or social media give information 24-hours a day regarding the economy. Individuals are not so sure about the reports issued on almost an hourly basis that are stating the economy of United States is improving. Many Americans are still without jobs, and do not believe their income can continue to support their families. The cost of purchasing a home is going up in many areas across the country, which is good for the market, but can be bad for the first time homebuyer. Unemployment, expectations, consumer income, interest rates are economic factors that influence individuals behavior and the United States fiscal policy.

Everyone tries to achieve the American dream, which is the opportunity for prosperity, success and upward mobility. For a lot of people, they get nowhere near their American dream because they are struggling trying to make a living. Lots of people are losing their jobs due to outsourcing which leads to people not attaining their goals of being in the higher class or even middle class status. So, what exactly is outsourcing? Outsourcing “occurs when an organization transfers some of its tasks to an outside supplier” (Gnuschke 1). In other terms, outsourcing is when a company shifts its business to a different country to produce goods and services at a much cheaper rate. A lot of people argue that outsourcing is bad for America while some people believe that outsourcing is actually beneficial for America. While outsourcing causes goods to price drop in America, outsourcing causes a lot of jobs to be lost which can cause an

The main goal of a business is to break even, spending about the amount as profits gained, or gain a net profit and expand. While expanding is expensive, companies will attempt to outsource jobs to different countries for a cheaper cost . Outsourcing is an issue for multiple unemployed and employed Americans, where the businesses could be supporting families by creating jobs for those who need them. Flatworld solutions, a company made to help businesses outsource jobs, would argue, “You can get your job done at a lower cost and at better quality as well” (Flatworld). It does lower the cost,

An economy, as defined by the Webster Dictionary, is the wealth and resources of a country or region, in terms of the production and consumption of goods and services. An economy, as defined by the vernacular, is a word that has become linked with synonyms that invoke feelings of dread, depression, collapse, and flat out anarchy at best. Both close to home and globally, people have felt some effect of the market crash. Since 2007, millions of Americans lost their homes, jobs, and feelings of financial security. To even begin to think about possible solutions to the current state of the economy, one must first understand the origin of our problems. We are in a recession today because of a weak job market, risky mortgages, and a heavy

The US economy is still the largest and the most important in the world which represent about 20% of the total global output and is ranked as 6th highest per capita GDP. The US economy features a highly-developed and technologically-advanced services sector, which accounts for about 80% of its outputs. Large American Corporations also play a role on the global stage with a huge amount of their companies are located all around the world. The US is also the 2nd largest manufacturing in the world and also has an important manufacturing base and is the main hub in producing high-value products. They have access to almost any natural resource and is the world’s largest agricultural exporting country with sophisticated

American Capitalism Capitalism - "An economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state." America was an ideal breeding ground for capitalism, a relatively new country, in need of young entrepreneurs to kick start it's already buoyant economy. The country was an ideal place to get rich quick, an idea that inspired the immigrants that poured into it each year. In America it seemed you could turn your rags to riches in no time at all.

Critics see outsourcing as impacting both domestic and foreign countries in a negative way. Domestic economics falters since business is transferred to outside sources, therefore local employment suffers, prices may rise, and people may lose their jobs. The United States loses about 230,000 jobs a year due to outsourcing and new jobs are not crated that frequently or rapidly, therefore local unemployment rises. At the same time, the US also loses skills due to outsourcing. Developing countries also experience global stratification where, even though the imported business upgrades social conditions, social demarcation and hierarchy occurs where the labor class is exploited by newly formed elite. This is called "Global stratification". Consequences may be disastrous not only for the country

The United States of America is a very unique country for numerous reasons. One particularly good reason is our great cultural diversity. Weaved deep into our history are the tales of people traveling overseas to the New World looking for better lives. Of course, not all these tales have happy endings (or happy beginnings, or any happiness anywhere in some cases), but regardless, learning about our nation’s migratory history is very important. Immigration is a very serious topic of discussion in today’s heated political climate; whatever your stance of the issue may be, it’s handy to have some knowledge of the subject, as it could affect your opinions on it in a substantial way. We should discuss where and why immigrants came to our shores, how legislators have tried to stop them, and what impact they’ve left on our country today.

Globalization is something that has been occurring since early in the history of entrepreneurs, and something that will not be going away anytime soon. Businesses can enjoy many benefits from globalization that include an increased audience to market their products to, and quicker sharing of innovative ideas. The advantages of globalization are just as much a disadvantage. The increase in competition between domestic and foreign business has lead to a decrease in employment and an increase in outsourcing. Businesses need

Globalization is the process regarding an increasing interaction of people, states, or countries through the growth of the international flow of money, ideas, and culture. It can also be tied to business ventures where businesses or other organizations develop international influence or start operating on an international scale. The idea of globalization has become very controversial in the United States labor market. There are many pros and cons on how it affects the labor markets. Along with the labor market controversy people also debate over whether globalization is a threat or opportunity to the United States economy. Although Globalization has brought a significantly positive impact on most countries in terms of economy, culture, and politics, it also has left some drawbacks behind on the same aspects.