Is the outsourcing of American jobs a good or bad idea? That depends on the way you want to look at it. Outsourcing has been a big political debate for many years, and many years to come. Well what is outsourcing? Outsourcing is when a company finds labor workers overseas because of the wage gap. Workers in other countries like China, India, and the Philippines make 16x less then what Americans do. So you could see it works out well for Business owners, but what about the thousands of Americans who lose their jobs in the process? Business owners say it's good for the economy, but is this really true? Let's look at all the positives and negatives of outsourcing.
Here's the tricky situation, nobody likes the idea of jobs being taken away from Americans and given to people in other countries, although if jobs were to stay in U.S soil, the prices of goods would be much more because American workers require higher wages. Bringing jobs back into the U.S may help the unemployment rate, but if goods or more expensive due to higher labor rates then companies might go out of business. If more business close then the unemployment rate will leap even higher.
Outsourcing isn't very good for business's either. Many companies are hanging this bright yellow tag on outsourcing and offshoring; "They seemed like good ideas at the time." This trend that began in the 1980's may finally be winding down. The savings once realized by outsourcing, hiring domestic, or foreign contractors. And offshoring, moving work overseas, aren't what they used to be. China and India were once prime targets for multinational corporations looking to save a buck. Both were valued for they pool of highly skilled, low class workers. The skilled workers are still their but so are the intense competition for their services, which causes these workers to become more demanding for pay. Wages in India and China have been going 10-20% a year in the past decade.
