economy because it contributes to higher unemployment, it promotes corporation complacency, and it hurts small businesses.
Outsourcing jobs is a major epidemic facing the American people today, because it is leading to higher and higher unemployment. Many critics argue that outsourcing benefits the American majority because it makes the products purchased at home in America a lot cheaper than they would be. These cheaper prices are because the cost to produce the items is lower since the jobs were outsourced. “Cheaper prices for consumers goods is often the first thing cited when defending outsourcing” (Hargreaves). However, most people don’t see what the negative effects of outsourcing are. Katherine Paralta, part of U.S. News, acknowledges that many Americans lose their jobs from outsourcing, she later even went on to say that as many as “3.2 million Americans have lost their jobs since 2001” (Peralta). These people are then in need of jobs to support themselves and many cannot find these jobs. What Peralta is saying is that when companies outsource their productions to cheaper areas, they are laying off the American workers which causes these people to desperately need money …show more content…
Experts on the topic argue that outsourcing allows for more corporate profitability, which in turn shows that companies are solely outsourcing their jobs in order to achieve this profitability. In fact, in a recent study it was shown that if items can be produced for cheap, then they could be sold for cheap and also more profit since the item cost so little to produce. Panos Mourdoukoutas from Forbes acknowledges that outsourcing does in fact lead to corporate complacency in many instances. He says “Outsourcing is easy to be replicated by the competition; it leads to fragmentation and disintegration of the supply chain, inviting new competitors into the industry. It also nurtures corporate complacency; and it undermines a company’s relations with its labor, customers, and the domestic and local communities” (Mourdoukoutas). This is saying that outsourcing is easy to be replicated and can very much help a business produce a profit, so it causes many businesses in a given field to replicate the same process. When this same process is replicated, it shows many other people who want to begin a big business that they can just outsource all their manufacturing jobs and make a great profit in the same field of work, therefore causes a rapid growth of more businesses in this field. What readers must understand is that this instance can occur in almost any field of