With the heavy flow of immigrants to the United States, there is a heavy flow of jobs leaving the United State to foreign countries due to cheaper labor costs. While many citizens are concerned with the amount of jobs that may be lost, the Bush administration believe this is a positive move for our economy that will not decrease the amount of jobs in the country, but in fact increase the amount of trade that goes on with other countries. "Outsourcing is just a new way of doing international trade, more things are tradable than were tradable in the past. And that's a good thing." stated Gregory Mankiw, chairman of Bush's Council of Economic Advisors.3 Over 2.2 million jobs were lost due to outsourcing during the first three years of the bush administration. However, Bush proclaims that in 2004 those jobs were replaced with the 2.6 million job opportunities that will continue to come for the United States citizens.
The movement of jobs to offshore locations effects immigrants that work in the auto industry or perform factory labor. For instance, a factory such as Nike is most likely losing employees because Nike can have the same work done but for a fraction of the price by individuals in countries such as China. This now leaves immigrants and low class citizens jobless. Outsourcing has effected all areas of labor except the service industry. Citizens and immigrants that hold answering service jobs have recently been at risk for job outsourcing. Microsoft is a prime example. Microsoft’s answering service is located in India, when a an individual calls the customer service line that call is transferred to someone in India who then takes the calls and processes orders and addresses concerns.
Outsourcing benefits our economy because it lowers inflation, allows employer and consumer spending, and increases productivity and lowers interest rates.2 This is commonly referred to as the trickle down affect. Workers in developing nations will get new and higher-paying jobs, and consumers in the U.S. will be able to buy products that are cheaper than if they were made in the states.
Although corporations are saving a great deal of money from outsourcing they run the risk of workers going on strike and consumers protesting their products. In turn, that creates a negative view on corporations. Outsourcing is viewed as immorality because it takes in no consideration for the current state of the economy in which it occupies, they become an monopoly wiping out all smaller jobs in that location.