How is outsourcing both manufacturing and service jobs good for Americans?

Wouldn't this lead to less jobs for Americans as well as being too dependent on other nations for services and manufacturing? Yet so many Americans on yahoo answers think this is a good thing and back president Obama's plan to eradicate both service and manufacturing jobs yet they didn't support this plan under Bush.

So someone please try to explain a logical answer on why its good for U.S. to continue outsourcing its service and manufacturing jobs.

10 Answers

  • 1 decade ago
    Favorite Answer

    It isn't good.

    But your question means one thing: you advocate a regulated marketplace.

    More jobs go overseas because of irresponsible consumers like you and me.

    We like low prices on the useless crap we buy. Understandable, right?

    People get money as salary or wages.

    Corporations like to get money from us.

    So, they sell us cheap things.

    They also look to keep their profits higher so, they ship labor overseas to ensure a larger margin.

    In turn, the product they make is made cheaper.

    In turn, they can sell it to us cheaper.

    If there's competition, they often have to.

    And, it continues in a cycle like this.

    Sadly, through this practice, they've essentially sold off our self-sufficiency.

    The jobs are no longer here. And, it's economically increasingly difficult to manufacture anything in the states.

    But, it doesn't stop at manufacturing. Ever call your credit card company's help line? Chances are your phonecall was answered by a nice Indian man. Or, a nice Chinese man who devoted years of training to English study. I'll bet he doesn't even have an accent.

    Tech support, even the encryption programming for huge banks (Citibank) has been sent to India.

    Are American programmers stupid? Do they make an inferior product? Are they just not smart or enterprising enough to offer competitive services? No. Of course not.

    In the "good old days" when people actually cared about America, you used to see a lot of "Buy American" signs around.

    You don't see that anymore. Why?

    Because product-making corporations based right here in the States ship as much labor as possible to cheaper, foreign sources. They do this to make more money, naturally.

    In that sense, it's reasonable. In time, however, as the entire labor force gets shipped over seas, all that remains here are a small number of very, very large corporations and very, very wealthy shareholders (smaller service companies will stop existing and small businesses will be run out of business).

    Those same big companies have bought their way into the American government. Their interests are protected repeatedly by obvious politicians who cater to their every whim. And, those politicians are kept in power by manipulating the population with propaganda and rhetoric telling them that their freedom is being protected.

    Thank you, GOP.

    But, ultimately, the source of the problem is us.

    Politicians and the corporations that own them won't listen to words.

    Talk with your wallet.

    Have some pride.

    Buy American (where you still can)

    Source(s): I just answered another similar question pretty much the same way... Sorry to cut and paste. But, it fits.;_ylt=ArprU...
  • 1 decade ago

    Simply stated it is not good for Americans, it never has been. However, you go on to mention that Obama wants to eradicate jobs, where does that come from? You go on to assume America would support this. But then you say Bush was doing the same thing but America didn't support it. This is just your imagination. Your trying to skew facts to match your bias. Truth is most real Americans now realize outsourcing helps the few make profit on the many until they milk it dry and move on to new markets. CEOs aren't paid to come up with good public policy, They are rewarded for profits, and this is an easy way to maximize profit!

  • 1 decade ago

    Okay, from my stand point it is. Except for the fact that most people don't realise their potential.

    Okay I keep writing it and it keeps coming out too complicated.

    America has a certain free government (which we are slowly loosing because no one will stand up for it) that makes America different. Our strong point IS NOT what we manufacturer or do, it is our ingenuity and our entrepreneuring. It is our business savvy and not our farms.

    Labour is not our strong suit. India, China, and Mexico are strong on Labour. They have plenty of it, few human rights, and its cheap. Hey it may not be moral, but its the same road we had to go down. For us to get to the better labour conditions we have today we had to had to go through horrible labour conditions and the creation of unions and labour laws, etc. Its just evolution. Of course, I believe it was a road we never should have gone down.

    Labour is demeaning. Labour is the means by which men gain power. Labour is what powerful men use to create wealth. They subjugate those who will (for our country is created free) into dead end "employment" which never leads anywhere except loss in meaningless bureaucracy levels and middlemanship.

    If we ship all jobs elsewhere than we as American's can do what we do best. Create. Create new and innovate ways of doing things. Live free, taking care of our own. Labour is an inheritance from slaves and serfs who just can't seem to realise we are free.

  • Anonymous
    1 decade ago

    Not to be the jerk here, but life was different back when most everyone had a job. Back in the 70's we had over 220 million jobs here. And many women could stay home and raise the family (which was a good thing). But, if I recall, our family friends had the same furniture, plates, and blankets for 40 years. Cars were kept for 20 years. We didn't go shopping on Suns, and a vacation was a once in a lifetime event. Our grocery shopping was easy because we cooked and kept it cheap. We had it good in many ways but not anything like now. We are far more materialistic. I can buy a VCR or DVD player right now for $50 but back in my day a VCR or Beta player cost over 600-1000 dollars easy. Plane tickets were over $600 not the $100 you can get today. My Dad had one pair of shoes his entire life. Families could afford maybe 2 TVs. We just didn't spend money like we do now and we didn't the the things like we do know, but we were employed and happy.

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  • Anonymous
    1 decade ago

    In theory it is good on RARE occasions. But ever since the Carter years the USA has been doing it WAY WAY WAY more often than that.

    Outsourcing theoretically makes sense if for some reason there is a genuine reason why it is more economical to make something outside your own country. For example, there may be some crop that doesn't grow in your climate, or some mineral that doesn't exist in your country.

    But those are exceptions to the rule. Most manufacturing has no intrinsic reason for being more economical one place versus any other place. It could be done anywhere, so it makes no sense to outsource.

    Government regulation and taxation have needlessly driven manufacturing out of the country.

    Even Obama recognized this problem during the campaign:

    OBAMA: For far too long, certainly during the course of the Bush administration with the support of Sen. McCain, the attitude has been that any trade agreement is a good trade agreement. And NAFTA did not have enforceable labor agreements and environmental agreements.

    And what I said was we should include those and make them enforceable. In the same way that we should enforce rules against China manipulating its currency to make our exports more expensive and their exports to us cheaper.

    And when it comes to South Korea, we’ve got a trade agreement up right now, they are sending hundreds of thousands of South Korean cars into the US. That’s all good. We can only get 4,000 to 5,000 into South Korea. That is not free trade. We’ve got to have a president who is going to advocate on behalf of American businesses and American workers and I make no apology for that

    Source: 2008 third presidential debate against John McCain Oct 15, 2008

    At one point, he and Hillary seemed locked in a contest to show who was more opposed to job outsourcing. Remember when Hillary declared that she had been secretly opposed to NAFTA?

    But now all the rhetoric is forgotten, and liberals blame Republicans for free trade, as if they forgot Bill Clinton signed NAFTA, and Obama is doing nothing to stop it.

    The USA was a prosperous nation before 1980 because we had a trade surplus - we exported more than we imported. In 1980 we started importing more than we exported, and that trade deficit grew exponentially - starting in the Carter years.

    Carter lost our trade surplus, Clinton signed NAFTA, now Obama doing nothing at all about it. The blame for free trade and job outsourcing lies squarely on Democrat shoulders.

    Source(s): World Almanac, Balance of Trade by year
  • Anonymous
    1 decade ago

    You're right, it's not. It's ruining this country (that may be their intention). We used to be the world's largest creditor nation, that imported raw materials and exported finished goods. Now we are the world's largest debtor nation who export raw materials and import finished goods (that's the definition of a Third World country). It all started with Reagan and the Republican Congress, and every President since has continued us down the path to ruination, and our current economic depression (let's call it what it is).

    The decline in unionization is responsible for the loss of American earnings power. When union participation dropped wages stagnated. There is a delay in the effect caused by the existence of multi-year labor contracts. Countries which still have strong unionization show less disparity in the distribution of wealth.

    Check out the charts here (an easy quick read):

    Workers Losing in the War on Middle Class

    Our politicians need to restore tariffs, like every other country has and like we had until Reagan dismantled them, and bring our manufacturing base back. But they won't do it unless we all insist on it. Loudly. And often.


  • 1 decade ago

    It is not good for America to outsource all these jobs to places overseas. Before the election in one of Obama's speeches he criticized businesses for sending all these jobs go overseas and that something needed to be done about it. What has he done to promote job growth here and to encourage employers to keep those jobs here? Nothing. He is all talk. He says one thing and then does another even if it is against the will of the American people. It is obvious that he despises business and instead looks for ways to punish them. Why would you punish something that is so key to our economic recovery? It is no wonder businesses won't hire. They don't trust this radical and incompetent administration.

  • zzone
    Lv 7
    1 decade ago

    It is NOT good, Americans need these jobs. It is easier to control people if they have to depend on the government for food, housing and other necessities, and that is the Obama Agenda. I have noticed Bush was bashed all the time, and some of the same things Obama is doing, and they now defend it. Double Standards is what it is. DEMOCRATS are the ones who Exploit children, NOT Republicans

  • 1 decade ago

    Our economy will not improve until we stop the importation of goods not made under the same labor and environmental laws that we must abide by. How can we effectively compete otherwise.

    Why do we turn a blind eye to those that are exploited? Many of which are children.

  • J B
    Lv 4
    1 decade ago

    We need to dismantle labor unions.

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