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Outsourcing and the Decline of the American Workforce

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This is from a post I made in response to a NY Times article about Disney laying off workers in Florida.

There are many reasons in my opinion for this kind of thing happening, and happening more frequently. First off, America can no longer compete with foreign companies and foreign workforces. The cost of doing business in the US is high compared to other nations. Corporate taxes are the highest in the world, wages are among the highest in the world and the amount of costly regulations and red tape is immense.

Then you have to take into account how our society has changed over the last 40+ years. The number of family households has declined from 81% to 66%, the number of people over 25 who have not married has gone from 1 in 10 people to 1 in 5, and the number of people who live alone has gone from 1 in 6 back in 1970, to 1 in 4 today. Less cohabitation and less family homes means less sharing of expenses, so people need more money to sustain their lifestyles.

Another aspect that effects things today is the double edged sword of technology. Technology has brought some amazing things to the average person, but with more things comes more expense. Just think about the personal items that the average person possesses today compared to 40 years ago. Cell phones, computers, internet access, GPS, Satellite TV, digital audio players, and even things like microwave ovens. Even though cars are nothing new, the number of cars per capita in the US has steadily increased since 1960 when there were 2 cars on the road for every 5 people alive in the United States, compared to now where there are 4 cars for every 5 people today. Then there's the flip side of technology, where through innovation and computer advancements we've watched more and more human beings every day get permanently replaced in the workforce. A trend that will continue to increase.

Raising taxes on businesses, raising taxes on the rich and raising the minimum wage are popular themes today, but such actions won't help the situation and if anything, will make matters worse. On the flip side, not raising the minimum wage, lowering corporate taxes and reducing costly government regulations will help to keep the jobs here, but I fear it will only be a temporary fix and the next generation will find itself in the same boat we're in today, if not worse.

I really hate to say this, but unless some drastic changes take place in both our government, and more importantly in our society, things will only get worse. I think we've gotten to the point where financially, our national and societal standards can no longer be maintained for the masses, and unless changes take place in a very substantial way on both fronts, there's not going to be a light at the end of this tunnel.


Updated 06-03-15 at 10:27 PM by Grim17

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  1. joG's Avatar
    If you are telling me the USA has changed, I won't argue.
  2. EMNofSeattle's Avatar
    The sky is falling! The sky is falling!
  3. Grim17's Avatar
    Quote Originally Posted by EMNofSeattle
    The sky is falling! The sky is falling!
    I guess the outsourcing of jobs that's been going on for the last 20 years of so is just my imagination then.
  4. SenorXm/Sirius's Avatar
    The effective corporate tax rate is not 35%, hell 1/3 of the Fortune 500 Corps pay less then 10%. I know many love to throw out that 35% figure and and say see how high it is, we can't compete. But the reality is our rate is actually lower then that. So no we do NOT have the highest EFFECTIVE Corp. tax rate in the world.
  5. DifferentDrummr's Avatar
    Outsourcing is nothing more than welfare for companies that want to pay near-slave wages for their labor.
  6. Lovebug's Avatar
    I guess this will only hit home for most people if they find themselves in a hospital, in pain, and the nurse keeps saying que pasa. Impossible? I think not.


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