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What are the consequences of outsourcing workforce overseas?

by Shawn Grundy

Created on: September 19, 2008   Last Updated: June 22, 2009

Make no mistake...Outsourcing WILL be the downfall of America. The irony here is that those who are against it most may be the very same who have caused it.

In the days of old when you went into your town's family owned grocery store or regional department store you could find products made in America that competed with other products also made in America. This was the true economic boom in this country. When we were a self-sustaining country. Sure there were products imported at that time too, but nothing like today's free-for-all importing extravaganza. I think that 3 people just on my block alone have a "connection" in China or somewhere else for low cost items like electronics, clothing, and fashion accessories. This is only the tip of the iceberg.

I first want to say that Free Trade is a great idea in theory because it helps countries stay afloat who otherwise could not generate enough income to compete with Microsoft, let alone finance the existence of an entire nation. This was the original intent behind free-trade until of course the larger countries decided that they should have their fair share of the global markets as well. Of course, most of these countries view their fair share as the vast majority of it.

We are swiftly fading from the economic superpower that we are known so well for to being the underdog in terms of providing our own people with products and even food. The largest retail chain in the country and perhaps the world provides items mainly from China and other foreign countries. The interesting thing is that when they secure their purchasing contracts with products made here in the states they literally pulverize the profit margin to a point where it almost makes no sense for the manufacturer to do business with them. Imagine that. Pretend you are a manufacturer for moment. You are now presented with what would seem to be the best opportunity possible; the chance to have your product purchased in extreme bulk and sold across the nation and across the world. Sounds great, right? Then why have some companies actually said no to this retail behemoth? Because when they are through negotiating, or should I say when they are through dictating to you what you will sell your products to them for, there is little profit left, if any at all.

Why is this happening? Because it can. How can we eliminate it? We can't. Short of adding tariffs to every single product coming into this country so high that you would have to buy from American companies,

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