Is Outsourcing Bad for America?

By: Anish Kotnis

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In 2015 15-20 million workers could potentially lose their jobs to outsourcing (Cromie and Lynn 94). More and more workers are losing their jobs every year due to outsourcing. Outsourcing is basically transferring jobs from one place to another. From 2000 to 2009, international corporations fired over 2.9 million U.S. workers while adding 2.4 million overseas (Lynn and Cromie 136). The people who lose their jobs in one area are forced to move to another area to find work. In addition, the families of the U.S. workers suffer due to unemployment. Even the government is against outsourcing because of the recent increase in the unemployment rate.


Outsourcing is bad for American companies since it hurts the economy and raises unemployment rate.


Some people believe outsourcing is helping companies save money and helping customers get more for their money.


Outsourcing is raising living standards of people all across the globe by providing jobs to foreign workers (Watts).


Outsourcing is taking a ton of jobs out of the United States which is hurting the economy tremendously. Outsourcing has also been linked to an increase in the unemployment rate.
Why Outsourcing is Bad for Business
Firstly, outsourcing is a major cause in damaging the economy. By outsourcing, the United States are losing jobs while giving other countries the jobs. It also puts a lot more work on the federal government which needs to maintain strong relations with outsourced countries. Even the government is against the concept of outsourcing because of the loss in jobs. The main problem with outsourcing is that it is taking jobs away from the United States. This is also causing some problems for the government. Because the other countries are helping us out, they want more and more from us. In 2013 2,637,239 jobs were outsourced from the United States (Lankford). Now, the workers in foreign countries are realizing their worth, which has led to a 20-30% in wages overseas (Lankford). Outsourcing has been key in hurting the economy.
Secondly, outsourcing has played a big role in the increased unemployment rate (Hira 10). Due to the jobs leaving the United States, it has become much more difficult to find new jobs. Even if the unemployment rate is slowly creeping down, it has been trammeled by outsourcing. Kolcraft, a company that outsources to China, has seen only a 10% decrease in costs, but has seen an increase in unhappy customers (Lankford). Even if the company saves 10% by outsourcing to China, bad reputation and reviews will still make them lose money. Outsourcing is a very dangerous thing for both the companies and America. Most companies generally save money, but are hurt in other aspects of their service. Even if the companies are saving money, it is hurting the economy and raising unemployment.


In conclusion, outsourcing is bad for American companies since it hurts the economy and raises unemployment rate. We need to all be aware of outsourcing because it is all around us; from the Colombian coffee we drink, to the Brazilian pistachios we eat (Watts). Outsourcing is a very risky thing if done improperly. Without outsourcing, we wouldn't get the stuff we get for so cheap. Although, all good things, have bad sides to them. At the time, outsourcing seemed like a good idea. As of now, outsourcing has shown us it's true colors. Outsourcing is helping us in some ways but hurting us in a lot more.


Currie, Stephen. Outsourcing America. Yankton, SD: Erickson Press, 2007. Print.

Hira, Ron, and Hira, Anil. Outsourcing America What's behind Our National Crisis and How We Can Reclaim American Jobs. New York: American Management Association, 2005. Print.

Lankford, Ronald. "Manufacturing in China Remains a Threat to U.S. Jobs." Opposing Viewpoints. Gale Cengage Learning, Web.10 May. 2012. 22 Feb. 2015.

Watts, Tyler. "Outsourcing Is Bad for the Economy." Foundation for Economic Education. Foundation for Economic Education, 18 Oct. 2012. Web. 8 Mar. 2015.

Cromie, Jenny, and Zotts, Lynn, eds. Outsourcing. Detroit: Greenhaven, 2013. Print.