The Effects of Outsourcing in America Essay - 1299 Words

â€Å"It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy† (Taylor). This quote by Adam Smith, cited by Timothy Taylor, defines outsourcing as a task that can be done within a group, but is instead done by a third-party group for less money. While outsourcing service benefits American firms, studies show it takes jobs from middle-class Americans and adversely affects the American economy; however, other research proposes that outsourcing might actually benefit the American economy. One effect of outsourcing is that it economically benefits American firms both domestically and abroad, and these benefits are the reason outsourcing is so prevalent in today’s world.†¦show more content†¦Although it may have positive effects on American firms, outsourcing does not benefit the workers who lose their jobs to outsourcing, but in fact, it hinders their ability to support themselves or their families and lead middle-class lives. Outsourcing also affects U.S. unemployment and the middle class lifestyle because it takes service-producing jobs from Americans. One study found that, â€Å"Today, the total number of manufacturing jobs in the U.S. computer industry is just 166,000, Grove notes. That’s lower than it was in 1975. Meanwhile, employment in Asia’s computer sector has swelled to 1.5 million workers† (Lamphier). This excerpt manifests that outsourcing has removed jobs from America, leaving fewer workers in certain jobs than 35 year s ago, yet it has benefited Asia whose workers are paid very low wages. Another researcher concluded, â€Å"We’ve lost 105,000 manufacturing jobs since 2000† (Trumka). This passage explains that outsourcing is rapidly decreasing the number of jobs available to Americans in certain careers and is increasing the number of jobs being outsourced. Another researcher argues, â€Å"Outsourcing places downward pressure on U.S. wages in general: American workers who are in competition with workers in low-wage countries will have a tougher time earning enough to buy a home, save for retirement, or pay for a child’s education. In other words, wages for many U.S. workers will noShow MoreRelatedOutsourcings Effect on America Essay1970 Words   |  8 Pagesthe effects of outsourcing in America. 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