The answer is simple.
In their never-ending search for ways to cut costs, U.S. businesses have turned to outsourcing to offshore companies to reduce labor costs. As a result, more and more jobs are being shipped overseas and more and more customer/technical service phones are being answered in by comparatively low-paid labor forces in India and other Asian countries. The U.S. workers who had these jobs are given pink slips and sent on their way. Jobless, they can no longer afford anything beyond the essentials, thus reducing the demand for products and services their former employers offered.
This, I believe, is the irony of outsourcing.
The U.S. government can help balance the budget and create new jobs easily. Just levy a tax on every job sent overseas. Fire 10 people in New York and replace them with 15 people in India? Well, that’ll cost you $5,000 per person or $50,000 a year. Or maybe it should work based on a hefty percentage of the salary no longer paid. 25%? Replace a $50K employee with an Indian? That’ll cost you $12,500. Do that with 100 employees? Write that check for $1,250,000. So not only will you alienate your customers by supporting them with foreigners reading off scripts, but you won’t save all that much money in the process.
After all, extended unemployment benefits, food stamps, welfare, Medicaid, and other benefits for unemployed people should be paid by the people who caused the unemployment, no?
Think of all the tax money the country is losing by not having these U.S. employees. Think of all the Social Security tax money not being paid — that alone is 15% of a person’s income (up to certain limits, of course). By greedy companies sending jobs overseas, they’re screwing our country out of important tax revenues we’ll need to maintain our standard of living — and get retirement benefits under Social Security and Medicare. Why are companies being allowed to do this?
And while they’re at it, why not levy higher tariffs on imports? The other day, I bought a perfectly good, 100% cotton polo shirt at a Walmart for $8. The only reason it was so cheap is because it was made in Pakistan. Meanwhile, towns across the United States are slipping into local depressions because fabric mills and clothing factories are closing down. People are losing jobs they’ve held for their entire adult lives. Why? Because companies can have these things made cheaper in China or Taiwan or Pakistan. Do they do.
Don’t you see it? Our drive to buy the cheapest of everything is causing people to lose jobs, This, in turn, is fueling this recession and requiring more and more of our tax dollars to help support the people who can’t get work.
Our greed and cheapness is screwing up our economy.
Why not make these companies pay for it? Yes, it’ll trickle down to us, but in the long term, wouldn’t you rather have a strong economy than a cheap polo shirt?