Protecting American Jobs Essay

Instead of relying only on domestic workers, many companies also outsource some of their labor into foreign markets. This practice can have negative effects on the economy overall, individual businesses can often benefit from this practice. Outsourcing offshore can allow companies to tap into foreign markets and expand their businesses.

A large majority of the American people are against outsourcing because it leads to fewer jobs, unemployment, and the negative impact it has on our economy. Moving a company to a place with cheaper labor and such causes thousands to lose their jobs and it also leads to less jobs that Americans can have. Outsourcing is only good for big businesses, not the people who work there or the smaller businesses around. It also has a negative impact on our economy. Although you are producing things at a cheaper price and selling it on the cheap doesn't mean people are able to buy it. If you get rid of jobs and cause unemployment, less people can purchase things and circulate our money. Our economy is built on the fact that people are able to purchase products. When that goes away

It ends up putting our country farther into its trillions of dollars in debt. “Eight of the biggest U.S. technology companies added a combined $69 billion to their stockpiled offshore profits over the past year, even as some corporations in other industries felt pressure to bring cash back home (U.S)”. Eight of the top technology companies,including Microsoft, Apple and Google, now account for more than a fifth of the $2.10 trillion in profits that U.S. companies are holding overseas. “The amount of unrepatriated foreign profits reached $2.4 trillion, according to Citizens for Tax Justice, allowing companies to avoid up to $695 billion in taxes

Since outsourcing has begun effecting both party lines, Republican and Democrat officials will be interested because members of congress are self-interested. Congressmen who continue to evade the issue and avoid taking a strong stance on this issue will lose votes when it comes to election time and that doesn’t serve in the best interest for any politician. The other big player in this issue is big business. As labor is offered at cheaper rates overseas, it is very tempting for businesses to take advantage of that resource. Saving money is a great way to raise profits and stock values of companies. This brings up the hardest part of this issue. Americans own stock in the big companies that outsource jobs, if the company does well then the stock does well and it helps the investor. The average family makes between 33 to 45 thousand dollars a year. People in this bracket generally rely on their job to provide income and security for their family, not the value of stock. The middle class is taking the biggest hit and has the most to loose from outsourcing. The middle class has traditionally been the backbone of America ever since WWII. It has always been in any candidate’s best interest to appeal to this group of voters.

be issued a temporary worker card that will allow them to travel back and forth

A debate that always seems to raise its ugly head when the issue of "foreign labor" is discussed concerns the types of jobs that immigrants take and whether they are actually taking these jobs away from American workers. I look at it as jobs they are "left with", not ones they are taking. The debate always shows an American family that has been displaced or lost their livelihood because they can no longer compete with cheaper labor. In reality the jobs that the immigrants get are the most undesirable, strenuous and dangerous ones. The only American workers that they compete with are the unskilled ones. I intend to explore if immigrants "taking" American jobs, if they are only taking the jobs that

Corporate Desertion Video: It isn’t fair for companies to relocate their manufacturing outside the U.S. (in order to pay cheaper taxes) and then expect to be represented and protected by the American Government. Cutting out these financial incentives makes more sense than lowering corporate taxes, which would perhaps only make the rich wealthier and the poor poorer. It would cause an even larger ripple effect in the work place, resulting in less pay, hours, and benefits. Additionally, I think companies are beyond the concept of profit, but are greedier than ever. Company holders and CEOs would still be able to live comfortably, if they just stayed in the U.S. and raised the wages and benefits for their workers.

As esteemed journalist Tom Piatak wisely puts it, “The trickle of outsourcing threatens to become a flood.” His words speak the truth as outsourcing has left United States’ workers jobless, and it continues to increase the unemployment rate every year. During February of 2009, American workers lost a record 651,000 jobs alone, increasing the unemployment rate to 8.1 percent, the highest it has been in 25 years (Katel). Multinational corporations, hoping to cut down costs and stay profitable in the market, outsource by exporting American jobs to third-world countries such as China and India. It may seem noble that outsourcing provides third-world countries with job opportunities, but the United States’ markets and industries are greatly

     The exportation of jobs offshore is job outsourcing. This, to some, is believed to be a benefit to our economy. According to a brief report from the National Center for Policy Analysis, “Increased economic globalization has caused jobs to move to the United States as well as away from it, and

High corporate income tax rates encourage US companies to store their foreign earnings abroad instead of investing it into expansion and employment in the United States. A May 16, 2012 study by J.P. Morgan found that 60% of the cash held by 602 US multi-national companies is sitting in foreign accounts. If an income tax cut is offered to companies that return this cash, the study estimates that $663 billion would be invested into business expansion and job growth in the United States. (“Corporate Tax Rate & Jobs,” 2016)

It is estimated that by 2015 the number of jobs outsourced could be as high as 3.3 million. The practice of outsourcing has helped many companies in the US and Internationally but it has devastated the American Industry. Comparably well paying jobs are not being created fast enough to make up for positions that were sent offshore. With fewer people working less money is available to spend common items and on bills.

In a tax avoidance scenario where an American corporate entity sends portions of its profits to offshore accounts, both the corporation and the recipient nation appear to benefit. These two entities are not the only ones affected by this style of exchange, however. The nation of corporate origin would be failing to reap the full potential taxed income from the total amount of corporate profit. If America offers a corporate tax rate of 38%, and the corporations react by moving their profits offshore, the American government ends up receiving significantly less money than if the tax rate was lower in the first place. In response to this, the government could increase the tax rate to make up for the loss, but that would, in actuality, drive more corporate profits offshore. If the government were to raise the tax rate to 50%, then corporations would only be more incentivized to favor the relative leniency offered by foreign governments. It is in this regard that an inverse variation presents itself between the domestic tax rate and the loss of taxable corporate profits to offshore accounts. Fig 1.

outsourcing, especially offshore, may bring a smile to your face. For computer programmers, call center workers, or factory workers the reaction is likely to be more negative. The primary pro is that outsourcing jobs outside of the U.S. may help to

Within my small organization 50% or more of my day is spend on power points, support documentation, and sales calls. Our resource pool is shallow being a startup and some day we will implement the “magic button”. The only aspect that I am uncomfortable with regarding outsourcing is using overseas labor when someone in the USA could perform the same job for a slightly higher price. Although the organization saves money in the short term, the economic strain by outsourcing overseas has long a long-term impact on the local economy. The utilization of temp workers has become more prevalent with workforce globalization.

There are a number of major benefits of outsourcing. Smaller companies can dabble in outsourcing, but often not so much in offshoring, which often requires higher initial costs despite the overall costs savings (Kumar & Salzer 2010). Essentially, outsourcing focuses on using lower labor costs to get production done in other countries where costs are not as high as the United States (Stuart 2011). Outsourcing is becoming increasingly less expensive as more and more companies are jumping on board and influencing foreign manufacturers to keep prices low. Some small businesses may have no choice but to outsource, while others do it to save costs and increase profit margins (All Business 2008). Here, the research states that "Outsourcing converts fixed costs into variable costs, releases capital for investment elsewhere in your business, and allows you to avoid large expenditures in the early stages of