Made in America Essay example

Submitted By bgreen7887
Words: 1014
Pages: 5

There is a saying that states, “ Numbers don't lie” lets examine. Every American at any given time can search through their homes and pick out 20 products. How many of the products would have “made in America”? A better question may be how many would be, “made in China”, or “made in India”. The reality is there is a high probability that the latter 2 would account for 13 or more products. The direct result of recently more than average thriving economies in China and India is intertwined with the outsourcing trend that is happening in the U.S. Social Security, unemployment , and other parts of the nation economy will be negatively affected by outsourcing. Are U.S grown companies accelerating other nations economy by outsourcing? This country need to be aware of those who unfortunately already lost their jobs due to outsourcing.

An under-stimulated American economy and U.S job loss are precisely the related to outsourcing. A big concern that arose when conducting research is that I truly doubt that citizens realize how many jobs are being lost. Again with the numbers. Estimations from Forrester Research estimates that 3.3 million white collar jobs will be outsourced by the year 2015(Drezner, 2004). It was found that the U.S Bureau of Labor underestimated the number of jobs lost to U.S outsourcing by a Study conducted by Cornell University. In 2004, the Bureau reported 4,633 jobs lost between January and March of 2004. A later study shows that 46,414 jobs lost, 8232 were to China, 80 % of the remaining to India, finally the rest were distributed (Myers, 2004).

Meanwhile the economies of main countries we are outsourcing to are experiencing inversely proportional effects. China and India are upon unprecedented growth and structural change. According to the Associated Press(2007), China saw its largest economic growth of 11.2 percent in the fourth quarter of 2007. Within China's grasp is Germany for the world's third largest economy. In addition to their growth in wages something that never happened in China is current, the middle-class. An article from ChinaDaily Online (2008) tells of a study done by Mackinsey & Company a famous American global consulting firm. Currently, 77% of Chinese families make income less than 25,000 yuan a year. Only 10% of Chinese families are expected to make 25,000 yuan or less by 2015. Majority of middle class families work in factories, which the U.S own. This clearly illustrates how we're force-feeding other economies while we struggle.

India is exactly doing bad at the moment either. An article from Glocal-cio, shows that India actually increased by 16.3% in the number of IT products they export mainly in the form of outsource to the U.S and other Western countries in 2011 (McDougall,20011) to reach 69 billion in total. The countries IT and business process outsourcing sector,including exports and domestic sales, topped 100 billion in total revenue for the first time. With the government underestimating and others doing so well one has to only guess what the future has in store for America.

The above paints a clear picture of harsh effect of outsourcing in the U.S to foreign countries. With all this data readily available and guessing all U.S business owners respect and honor their land, why is this trend still active and rapidly growing? According to, India has the largest technical and professional talent pool in the world. The country has a population of over 1.2 billion people and around 3.1 million added to the workforce every year. The number one reason why most outsource to India is because of its flexible pricing options or it's cheap. Most of the savings is due to the gap between personnel cost in India opposed to other developed nations. It really is pitiful that we would even consider doing such a thing as outsourcing in such economical hardships as we are experiencing. An intriguing unforeseen indirect opportunity arises from outsources.