Hello?People?
Today, i am gonna write about the possible effects on the U.S workers when we have cheap goods from imports and cheap labor outside the U.S.
First of all, the cheap goods outside the U.S affect the workers in the U.S by starting competition with the companies in the U.S who make same product. The U.S workers and their company has to offer good deal on their products to attract consumers either by lowering their costs, or guaranteed quality. However, most consumers like their goods to be cheap as possible, thus, it makes the competititon more fierce than it should be. In consequence, the U.S company usually look for other ways to cut cost of their production by laying off workers from their factories and company floor, and workers in the U.S, as a result, end up without jobs because of the cheap goods from outside.
Secondly, the cheap labor outside the U.S or the sweatshops offer the U.S companies good incentive to move their production line to more cheaper labor possible market. Thus, leaving the U.S workers without jobs. In the midst of all this we must remember that the U.S companies outsource their production when they are successful as a business. In other words, the U.S companies move their production outside the U.S and leave workers in the U.S without job when they make profit because in order to move their production the company need large sum of money to set up their new production line.
Lastly, i am worried that if this trend continue in the long run the advantage which is buying goods cheap here in the U.S might hurt the U.S workers because no company would want, as long as they can keep cost of production down, to build their manufacturing line in the U.S. However, there are exceptions to this, the upper or higher level products with expensive tag on them might still make the products in the U.S, for the sake of proximity and convenience, but those items tend to be made in fewer numbers, for example the designer collection items, and handmade, or custom made products for few people who are willing to pay extra money on them.
If you have question, comment, or analysis, please feel free to share.
Ganaa
Great blog!
ReplyDeleteo yeah..if companies in America produce less items.
These items would be pretty much expensive..
You have a good point about the items that are handmade or designer items that are made in the US they are more expensive. I think that has a lot to do with the fact, that we as Americans see out "time" as more valuable than everyone else in the world. Workers in other countries are completely satisfied with making $4-$10 a day, when everyone here bitches about the minimum wage being $8 which is too low for cost of living here. Our "time" is worth more than $8 an hour- a feeling that most, if not ALL Americans have.
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