Is outsourcing really affecting or helping the US economy.?
President Obama on his trip to India next week will be talking about US-India relationships and having so many US jobs taken by Indians. Is this good for the US or not?
Many of the President's aides say that this is helping the US because while providing jobs for so many Indians it is increasing the growing middle class who then demand foreign goods. Furthermore, it increases investment in the US. Thus, President Obama wants to spread the message to the US population that even though outsourcing might take away their jobs, in the long run it helps them out as exports rise and investments into the country expand. This has already been witnessed -"U.S. goods exports to India have quadrupled to $17 billion over the last seven years and services exports have tripled to about $10 billion".
4 comments:
There is nothing wrong with outsourcing to India. Their economy provides a service for cheaper and potentially better than our economy does. The U.S. workers will find jobs when and wherever the next demand arises. Something new will show up. It always does.
I agree that outsourcing in India is beneficial to the U.S. Job creation overseas can be complementary to jobs in America. In the article I just blogged about, the author gave a relatable example of how a cheap call center in India can encourage a company to expand and open more branches to sell its products in America.
I also agree that outsourcing is not such a bad thing. Like we talked about in class, some countries, such as Sweden, would rather have lower paying jobs outsourced. This allows for more equality of income as well as the possibility for the creations of more jobs with higher pay. Perhaps this is a better way to think about the outsourcing than the traditional American view.
I agree with all above. Indians are willing to do jobs cheaper and work longer hours, which keeps prices down and benefits us consumers. Outsourcing the jobs to India provides cheap products which American want. Also Americans will find jobs in America that fit them and that have not been outsourced to America.
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