Thursday, January 5, 2012

Outsourcing Kills!!

           Have you ever wondered why jobs are being cut and factories being shut down all over the U.S, or why everything is "made in China"? One word can describe this, outsourcing. Outsourcing is less expensive than having to pay American workers $8.15 an hour, because countries like China, Taiwan, India, Etc., accept less pay because the U.S. dollar is worth more in their countries. But if it is better for companies to outsource, is it better for the U.S.? I believe it is not, outsourcing is not creating jobs in America, in turn it is ruining our economy.

            There is a large list of companies that started in America then outsourced because it was cheaper. Some big company names are Wal-Mart, Schwinn, and various other toy and electronic producers. But cutting jobs in America and outsourcing to China may be in expensive but it is not better. Cutting jobs in America lowers the amount of workers, who are tax payers, who input money into the economy, therefore lowering the worth of the U.S. dollar and raising the overall national debt.

            Franklin D. Roosevelt once improved the American morale when there was the Great Depression. He created jobs that didn't pay much, but it was money which the American people lacked and the simple jobs gave them hope. Nowadays, we are cutting America jobs and sending them to China, India, Taiwan, etc., severely destroying the American morale, which FDR built up. Why do we choose countries like China? Well, it is simple China, a Communist country, has a "fixed economy," meaning no matter how much debt they owe, the worth of their currency stays the same. Technically this is illegal for the global economy, but companies, like Wal-Mart, find it desirable. Now let me ask you, are we, as the working class, supposed to move to China and get a decent job? The answer is, no, we must fight for our country, our economy, and our freedom.

            But outsourcing isn't completely unjustified. Outsourced companies still contribute to the economy by paying taxes, a decent amount too. Also China, having a cheaper work labor, allows prices to be low. That is one reason why people find Wal-Mart desirable, because of their amazingly low prices. The real reason why Wal-Mart is successful is their "no-demand" system. They have a computer system that tracks what is bought so they can order that item or items. Say you order five Snickers bars, Wal-Mart will order five Snickers bars. This system makes it so there is no supply or demand, this system is very desirable among other corporations all across the world. But the outsourced company’s tax input is not enough to compensate for the American workers who were laid off.

            Therefore, it is my sincere belief that it may be cheaper to outsource but it is not always better. Outsourcing lowers the amount of tax payers, raising the U.S. debt and lowering the worth of the U.S. currency. The American morale is being diminished by outsourcing and job cuts; the economy is receiving the blow of job cuts too. Would you want to see "Made in China" written on every product you buy, or would you rather be assured by the "Made in the U.S." badge?

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