Monday, May 4, 2009

Outsourced

It could be said that the outsourcing of the American car industry is what inspired other American companies to do the same thing. Outsourcing is when a company sells part of itself to another country. Traditionally, this is done to save money on employee salaries, safety standards amongst other factors.
Looking at outsourcing in regards to today’s economy it could still seem profitable, but then again it would only deepen America’s portion of the recession. The main problem that was facing the car industry was that we had to negotiate firing workers with cutting back production/costs both of which are bad for us in the long run. The United Auto Workers of America (UAW) have, and continued to this date, tried to prevent the production of auto parts from being shipped overseas with little success.
Now there is a big uber-technical economic explanation of why this is so bad, but I’m just going to simplify it. Outsourcing leads to job loss and at times of high inflation (i.e. now) this creates larger unemployment making finding a job that much harder. The jobs that are sent overseas, in terms of the auto companies, are the general assembly line jobs such as screwing on bolts and checking the durability of a certain car part, jobs that tend to be given in America to slightly undereducated and unskilled laborers, something that benefits the value of American companies when they pursue and overseas option.
So far companies, such as Ford and GM, have outsourced to countries like Australia, Mexico, and even India. Why do these companies feel that they still need to produce outside of America? Why not just hire skilled laborers in our own country? Now I have said before that people are traditionally stupid. In a market that calls for skilled labor we feel some need to be more interested in careers in banking, public service, doctors etc. But if people really want to save the economy they should look for a career in the auto industry because that is really the key to the recession, we need more exports to counteract the rising imports.

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