The Pros And Cons Of Outsourcing Labor

U.S.A Economy: An increasingly vital role. Immigration Policy Focus. Volume 1, Issue 2. PP. 4-16.

From an economic aspect, immigration is somewhat beneficial since it increases the US work force and it’s economy. According to Camarota Steven on his testimony’’ Immigration and the US economy’’, immigration overall increases the economy of the US due to the fact that more workers and more people mean bigger GDP. He also pointed out that the impact of immigration of the seize of the economy is not a measure of the benefits of natives. That means that regardless of the benefits of natives, Immigration is a tool to increase the economy of the US. On the other hand, it can be detrimental to the US economy. In fact most of the immigrants work “under the table” which make the fiscal

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.

Outsourcing is a method used by many corporations in which their products are manufactured in foreign countries often for cheaper labor.This method method of productions has it’s pros and cons.

There is question on whether or not the immigrants will help or hurt the economy. Some say immigrants will take jobs from Americans and damper U.S. tax rolls because they aren’t as skilled or educated. The fact is immigrants actually increase “overall wages and the pool of jobs” and add to the U.S. revenue (Dwoskin). In 2006 there was a suspected “21 million immigrants, about 15 percent of the labor force, [that] h[e]ld jobs in the U.S.” However, the U.S. only had about seven million unemployed. “So the majority of immigrants can't literally have "taken" jobs; they must be doing jobs that wouldn't have existed had the immigrants not been here,” (Lowenstein). Roger Lowenstein also presents a valid and insightful point in stating that immigrants who take these jobs that “wouldn’t have existed”, relative prices could be lowered in a similar way that global trade does.

A common biased opinion on immigration is that immigrants coming to the United States are taking American jobs. According to the Immigration Policy Center, “research indicates there is little connection between immigrant labor and unemployment rates of native-born workers.” The jobs that immigrants are taking are the low-budget jobs that Americans do not want. They not only get less pay, but also less benefits in comparison to American workers. In fact, according to Forbes, “illegal immigrants actually raise wages for documented/native workers.” America is considered to be more productive when we have more trading partners, Undocumented workers with limited English skills allows more American workers

One common misconception among native-born Americans is that with a virtually unlimited supply of “outsiders” willing to do a job for less than the native who is currently doing that same job, the value of the low-skilled work force is decreased as a whole. This, in turn, leads to the belief that immigrants are depressing the wages of that working class. However, over the last twenty years, numerous studies have been conducted in order to find out if this is true or not and in most cases the findings indicate that, “Immigration seems to have no effects on the wages or employment of white natives and very slight, if any, negative effects on the wages and employment of native blacks.” (Waldinger, David, Lichter 19)

     The exporting of American jobs is an issue that is important and will become increasingly so as more and more white collar jobs are shipped overseas. American companies in the past few decades have been sending American jobs overseas paying residents of other countries pennies on the dollar what they had paid American workers to do. This saves the companies millions of dollars on labor costs but costs Americans precious jobs.

The last 10 years of U.S. economy can be seen by the impact of immigrant reform in different scenarios. In 2013, undocumented immigrants have been granted legal status; citizenship has helped to increase the U.S. GDP and would accumulate by an additional $1.4 trillion compared to the 10 years in between the 2013 to 2022. This earning will give a chance for the Americans some additional earnings of $791 billion at the same period as a personal income, in which the economy would create job opportunities, about 203,000 new jobs per year. In these years the undocumented immigrants will earn about 25.1 percent more than the current earnings of the immigrants. These earnings show that they will be contributing significantly to the federal, local, and state taxes which will add to tax revenue in 10 years with $185 billion to $116 billion for the USA federal government as well as $68 billion to the state and local government (Stuart Anderson,2011).

Immigration is important for the growth of the economy because it’s a major contributions towards the economy. The United States has often been referred to as a global melting pot due to its assimilation of diverse cultures, nationalities, and ethnicities. Today, this metaphor may be an understatement. Edstam and Carlson an immigration activists reports that, without the extra work and consumption provided by immigrants, the economy of the United States would collapse. They include in the article saying that, despite the common notion that immigrants steal jobs from Americans, the 2005 Economic Report shows that The Federal Reserve in fact recently raised its benchmark interest rate because it observed a strengthening U.S. economy with reduced unemployment, rising wages and some labor shortages Immigrants continue to strengthen local economies through their higher productivity and increased consumption (Edstam and Carlson). An article by Savajlenka added, Studies show that competition with American workers among immigrants is very minimal and limited to the unskilled labor. Therefore, Savajlenka immigration analyst states that, “Numerous studies have documented that immigrants are needed to replace the large number of retiring Baby Boomers and that the future growth of the U.S. workforce will come from immigrants and their children” (Savajlenka). This is an additional like a shot in occupations that presently use several older employees, like janitorial and truck driving

Economists are in somewhat of an agreement the there are positive and negative effects to immigration, but the positives out weigh the negatives. Immigrants of high- or low-skill, legal or illegal, can but are not

It has been said that Immigration damage the economy. This is not true because foreigners help American economy to prosper. Immigration increases purchasing, and increases demand for labor. Immigration not only takes jobs, but also creates them. For instance, a man comes to America from Italy; this man opens a small Italian restaurant, this restaurant becomes prosper during the years. Five years later, this Italian man owns two more restaurants and employs twenty Americans. Similar stories, which help our economy, have happened from the beginning of the immigration times.

Illegal immigrants help boost the United States economy by paying some taxes. Like American citizens, illegal immigrants may pay local, state, and federal taxes including sales tax that helps support government services that they may not be able to access (Ewing 9). Since more American citizens are becoming aware of the benefits of an education, openings are being created for illegal immigrants in low paying jobs (Nadadur 1037-1052). Americans, unlike illegal immigrants, have more diverse careers. Aliens are more concentrated in specific job areas, resulting in a decrease in immigrant labor cost. This helps boost the United States’ economy (Carter 777-795). Of the approximate eleven million illegal immigrants in the U.S., most work in labor intensive jobs. Careers such as construction and agriculture tend to attract illegal aliens and they account for about twenty-five percent of the work force in these areas (Ewing 9). Ben Bernanke, chairman of the Federal Reserve admits that illegal immigrants help improve the United States economy and does not suggest turning them away (qtd. in Quindlen 90). Anna Quindlen, in her article “Newcomers By Numbers,” agrees with Bernanke and believes that immigrants are the factor that helps keep prices low. She also adds that immigrants are not causing American citizens unemployment, but are simply taking the low wage jobs that citizens are not willing to do and even boosting the economy (90).

As corporations started to grow in scale and influence, they acquired the ability to globalize their workforce without the limitations of international boundaries. This practice allows companies to save significant amounts of funding by acquiring outsourced laborers who were not insured by the minimum wage protections mandated in domestic factories. While this change helps companies save considerable sums of money by hiring cheap labor, the American work force suffered greatly. Unable to compete with the exceptionally low wages of foreign competition, domestic workers lost their ability to collectively bargain in fear of being fired or replaced. Faced with constant job insecurity, employees began to actively abstain from rallying for improved

The most avidly debated effects of immigration involve the United States’ economy and labor force. It is estimated that there are 12 million undocumented immigrants in the United States today, and their impact on the economy can be perceived as positive as well as negative. The overall effect is unclear, and this essay will present both sides of the debate.