Thursday, September 11, 2008

Outsourcing?

Even after reading all the information and differing viewpoints about outsourcing, I still don't know quite what to think. I mean I realize that many people are losing their jobs in this country, and many blame it to outsourcing. But after reading Drezner's paper "The Outsourcing Bogeyman", he really gets me thinking. Maybe outsourcing isin't as big of a deal as we thought it was. Drezner brought up some really persuasuve statistical data that showed that even though many companies are outsourcing, the money that they are saving by outsourcing is allowing them to create even more jobs than before. And he also points out that the decrease in manufacturing jobs is due to the increase in technology, not outsourcing. If the true cause of the decrease was outsourcing, then the countries that we outsource to would have an increase in manufacturing jobs which just isin't the case. In fact, those countries have seen a decrease in manufacturing jobs as well. And what about all those benefits that outsourcing has brought to underdeveloped countries that have lived in poverty for so long. I mean, we are morally obligated to help them too right? I may not be sure about my stance on outsourcing because it can bring a lot of good to countries, but also has the possibility of bringing harm. But I do agree with Drezner when he says that we need to rework the TAA (Trade Adjustment Assistance) program so that it can help workers that have actually been affected by outsourcing.

1 comment:

Mai_Vu said...

I am also not sure how I feel about the situation, but I definitely agree with your point concerning the Trade Adjustment Assistance program. It needs to be modified in order to take into account ALL of the workers who lost their jobs due to offshore outsourcing.