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American Government - Personal Statement Example

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The outsourcing policy of the United States Government Outsourcing in the United States began in 1980 because of slow economic growth and high unemployment rate. It was encouraged by excessive U.S. debts, Free Trade Agreements, globalization and the intense desire for profitability…
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American Government
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American Government

In the United States, according to PLU (n.d.), President Bush has been an advocate of pro-outsourcing policies and supporter of free trade. The President believes that the country benefits from outsourcing in the long run although there are short-run disadvantages in the system. Bush’s administration calls the system as a new way of doing international business. Crisis created by outsourcing. The Heffner’s (2010) study said that over the past years, 3.7 million manufacturing job in the U.S. have been lost because the workers cannot compete with the rate of third world’s wages. For example, he cited the salary of an engineer in US is $100,000, while this amount is already equivalent of 3 engineers in the third world. Hemphil (n.d.) calculated the cost of IT and telecommunication work in US as $100 per hour while same work could be done in India or China at $20 per hour. Rees, 2004, an author of labor policies, said that the effect of outsourcing was felt by employees who lost their jobs, and to others who were forced to accept low paying jobs because of changes. There are also social costs and disadvantages caused by painful dislocations and separation of families. On the government side, the government tends to lose income taxes for jobs outsourced in other countries plus the investment and capital transferred elsewhere. ... Read More
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