If companies stopped outsourcing completly & brought back all jobs to America how much would unemployment drop?
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I ran out of characters. So anyway if all of the U.S. companies stopped sending all of the jobs overseas to China, India, or whatever country and had no foreign workers over there and instead hired only U.S. workers how much do you think the unemployment rate would drop by? Like if outsourcing was eliminated completely no workers in China. Just strictly U.S. workers are the only people employed. I'll add more details if you need it. Feel free to give me your opinion and answer.
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Answer:
I know what you're getting at, but this is an over simplification. It's completely dismissing the theory of comparative advantage. 1. Prices of consumer, agricultural, materials and energy would rise. 2. Quantity and range of products available to US consumers would fall considerably. 3. Demand for intermediate services such as banking, shipping, logistics, transport industries would fall. 4. Lacking competition, the efficiency of domestic industries would fall. 5. Export demand would fall, not only because income of foreign nationals would fall. They may also retaliate with import restrictions of their own.
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Other answers
Given the fact that there are more jobs outsourced TO the United States from abroad than the other way around, prohibiting outsourcing would result in MORE unemployment in the US.
SDD
This is easy. If no jobs were outsourced for cheaper labor companies would go under by the wayside. Take Walmart for example, if Walmart produced everything in America the price of their products would skyrocket and undoubtedly the company would fall apart. Walmart employs more people right now at their stores than in their factories (that is true). If the jobs were in America Walmart would not be able to afford production. That is only one company. I could give hundreds of examples but there isn't enough room on here for that. The main problem for consolidating labor to just American plants is that we have a free trade run economy. We get more money from outsourcing labor and reaping the benefits of a cheap product. That why bailouts are so harmful since they make it so a company with a bad product not made cheap can still be on top. Our unemployment is not so bad internationally. With the present administration finally authorizing decent tax incentives for businesses hiring employees the unemployment will dwindle slowly but surely (as long as the investing majority of the senate and congress stop filling their pockets with the losses of American money though regulating political policies to benefit companies they have investments in). I could ramble more but il stop here. Hope you read the whole thing.
doug
those companies had to pay 12 dollars an hour to American, now they are paying 300 dollars per month to an employee. They saved a lot and we lost a lot, SIMPLE!
Vikram
20%
Breanna B
100% and more there would be massive job vacancies, congress has been selling millions of american jobs overseas for decades
Harley Drive
Most people assume that if we stopped importing stuff, other countries would continue to buy our exports, but that is not the way the world works. and that foreign worker do not also create jobs. However they rent apt, and buy stuff so if they all left we would too much housing so construction would stop and stores would close and fire people for lack of customers and less of the things we produced would be sold. Outsourcing and foreign labor effect wages not the number of jobs. There is always enough jobs if wages are low enough although it may take time to create them once they are lost. We had enough jobs a few years ago when we bought more imported goods and had more foreign workers than we do now.
meg
I doubt that Americans will accept the jobs which pay less than a dollar per hour. The Chinese, the Indian etc. can do that but not Americans. Our minimum wage is $7.25 per hour. That is the main reason why it comes to outsourcing. Stopping it, our products cannot be sold even in our country because imports are cheaper. So we have to raise tariffs, and concentrate only on domestic market. Our industry will have to downsize and high cost. The price of the products under protectionism might be so high so that most of Americans cannot buy. No it is not a good idea at all. I'm sure that it won't increase jobs here at all. It could be the opposite.But there are jobs that the Chinese and Indian cannot do it. They cannot come to work here in our country. So the jobs will belong to Americans if you accept it. Or the jobs we can do best in the finance and service sector or entertainment sector, garage invention etc, These kinds of jobs will belong to only Americans for many years. What are we doing to get these jobs? It is ours.
Anjaree
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