Since 1955, the United States has allowed the concept of what is known today as outsourcing. According to Henry (2004), “On January 15, 1955 the Bureau of the Budget Number 55-4 was passed by the federal government which began the practice of outsourcing by federal government in private industries relying solely on their products and therefore creating no competition within the private industry’s economy.” Since that time, there have been numerous jobs that have been lost due to the increase of outsourcing over the last thirty years. As of 2003, the status of the issue is that this problem is becoming increasingly more relevant. Congress needs to pass a law that will keep companies in the United States from hiring people in countries where they will work for less than what a person in the United States would receive for the same type of job because of the H1-B visas.
The economy of the United States is not in a very good solvent position due to the outsourcing of jobs overseas. When companies use individuals from other countries to perform the duties that an American worker is capable of doing, it affects the American economy because the American worker is not employed and therefore cannot spend any money in order to strengthen the economy. In order for the economy to improve, there has to be spending of good and services in the United States. If the spending is decreased, then the economy is not going to be very strong, and there is going to be a weak economy. “America must never compete in the battle to see who can pay their workers the least, and it will take sustained innovation to ensure we don’t have to” (Mehlman, B. 2003). In the next two years, over 3 million white collar U.S. positions will have been lost due to offshoring of jobs overseas. This will impact the economy greatly because this many jobs being lost will put more Americans in the
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