Protecting American Jobs Essay

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Protecting American Jobs

For the past two decades Americans have been getting laid off because their jobs are being transferred offshore. “Advances in technology and low-cost telecommunications now mean that a computer programmer, data entry specialist, or help-desk operator answering calls for a U.S. company can work as easily from India or the Philippines as from Iowa--and save parent companies some 30 percent to 70 percent in costs” (Otterman, 2004). This poses the question should the government protect American jobs by imposing stiff penalties on companies that transfer jobs offshore by outsourcing or manufacturing. No, stiffer taxes are not going to significantly effect the number of jobs that are being transferred off shore
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Consumers want the best quality at the lowest price and the investors want to see a high profit, so to do that companies have to find the middle ground. Which means they have to find the best solution for everyone even if it means outsourcing jobs offshore because it more cost effective for the company. According to Jagdish N. Bhagwati, “employing workers at lower cost allows U.S. companies to be more efficient and productive, permitting them to create the same amount of goods with fewer resources. In turn, this lowers the price of the goods in the United States, strengthening U.S. companies and freeing workers for other tasks. The savings allows U.S. companies to stay afloat and expand in a highly competitive global market” (Otterman, 2004). Outsourcing is not always a bad, it is a change, and change is what pushes both our economy and our nation forward.

Another good point that has been made is, the average global tax rate on multinational corporations is about 27 percent, compared to 39 percent in the United States (Wolverson, 2011). Given this information it would seem that instead of penalizing our multinational corporations for increasing international trade, maybe the United States government should focus more on bring in multinational corporations from other countries. This would not only create more jobs in the untied states to compensate for the ones that are being lost overseas but also
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