Outsourcing America
The outsourcing by definition is not a new concept: the procuring of services or products, from an outside supplier or manufacturer in order to cut cost. Historically, companies have sought ways to lower cost and increase profitability. Often, these two desires have run counter to the needs of their workers. During the mid 20th century, manufacturers applied this concept primarily within the borders of the United States. Many companies redeployed their workforce from urban to rural areas, relocating their operations from northern locations to less unionized states as the Carolinas, Kentucky and Tennessee. The 1960's saw the beginning of the gradual shift towards moving those same jobs overseas, which is commonly known as outsourcing. Today, the outsourcing to foreign countries is one of the biggest challenges facing the U.S. worker today. The ratifications of the North American Free Trade Act (NAFTA) in January 1994, attributed to the loss of hundreds of thousands of jobs to Mexico and Central America. Apparel and auto manufacturing moved steadily to Mexico, closing plants that had moved originally to the rural areas in the south and southwest. The textile and manufacturing of electronic items, clothing, au
Between 1995 and 2005 professional services expanded at a 15 percent rate (accubiz 2005). Outsourcing does have some advantages for corporate America. This mentality runs rampant throughout the majority of the articles in favor of outsourcing, even though, the CEOs at the top offshore outsourcers earned an average of ten million dollars in 2003, with the average CEO compensation at eight million dollars. In most cases most people find themselves without income and unable to support themselves or their family. They maintain that for many Americans, this breached the final frontier of American jobs. The article provided an example of a Pakistani worker upset about back pay that threatened to divulge information about patients at a San Francisco hospital that he was transcribing medical records. Programs such as Social Security, Food stamps, and housing assistance are programs that have helped lower the high risk of poverty. Companies that outsource have reported between thirty-five to forty percent decrease in wages that affect profit margins (Network World, cited RTTS, 2004). Instead of these people trying to improve these services in their own country they would rather make a profit and send it across seas for a cheaper price. For many people in America to be in poverty means that they live from paycheck to paycheck. 11 percent of outsourced jobs are financial. The opponents of outsourcing to foreign countries perpetuate a total different view of the situation at hand. Some of these companies are not that bad and they give back to the people, but why strip America of their jobs? Why cause more depression and stress for the American people? Even the leader of our country is for stripping away the jobs of the American people and making a little profit. Now those really don't hurt as much as losing a job and it don't have extreme consequences.
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