Answers » Categories » Business

What are the Good and Bad Aspects of Outsourcing on the US economy?

What is the Good Side and the Bad Side of Outsourcing as it relates to the United States economy?

1 Answer

Outsourcing can either be good or bad for the economy of United States. Some believe that this method is beneficial to the economy of the country for it lets Americans stay in higher managerial positions, increases the level of entrepreneurship in the country and allows companies to have fewer expenses. However other critics believe that outsourcing deprives Americans of career opportunities and it decreases federal spending and a company’s tax debt.

Actually, all of these people have a point regardless of which side they are in. Outsourcing has certainly decreased the number of available jobs in the country.

Careers which require minimal skills are now difficult to find. This exact situation can pull the whole country down to extreme poverty simply because individuals won’t have money to spend without their jobs and tax revenues would soon decrease over time.

Even the technology and computer industry is currently suffering from the harmful effect of outsourcing. Fewer consumers would eventually lead to fewer manufacturers and would only increase the need for outsourcing for companies to come up with cheaper products that the public would be able to afford.

People who are promoting the use of outsourcing state that this technique helps boost the economy of other nations which implies that these countries would be able to pay their US debts. Political connections and product trade are also greatly enhanced with the use of this method

However, there are a few US companies which abuse their foreign employees by providing them extremely low wages and letting them work even if they are not still of legal age. This situation must be stopped by the government to avoid political conflicts among other countries.

Nevertheless, outsourcing is definitely here to stay despite all the things that have been said about the method.

Answer this question

by Anonymous - Already have an account? Login now!
Your Name:  

Your Answer:  
Source(s): (optional)

Enter the text you see in the image below
What do you see?
Can't read the image? View a new one.
Your answer will appear after being approved.

Ask your own question