outsourcing work: INTEREST GROUP PERSPECTIVES

Workers’ Unions

Workers’ unions staunchly oppose outsourcing because they rep-resent American workers whose jobs are threatened by the movement of production to other countries. They want jobs to remain in America, no matter the cost to consumers. Workers’ unions often represent exactly the types of laborers whose jobs are likely to be made outsourcing work because of cheaper labor in low-income countries. Interestingly enough, by at-tempting to raise the wages of unskilled workers, it is possible that many unions actually contribute to the causes that convince companies to out-source jobs to low-income nations.

Environmental Groups

Environmental groups generally dislike outsourcing because lower-income countries, specifically China, often have very loose environmental standards and allow factories and other facilities to pollute more than similar facilities do in America. Many people see this as a transition and part of China’s path toward a modern economy. In general, it is possible that many low-income nations will eventually support types of industries that do not require or rely on waste to produce goods. However, most environmentalists are not interested in waiting for the economies of low-income countries to catch up to the standard of environmentalism in countries like the United States. Especially because of recent interest in climate change and rising ocean levels, environmental positions on outsourced labor might tend to be quite strong at present.

Cato Institute

The Cato Institute is mostly in favor of outsourcing, as it focuses on the overall effects of outsourcing on the economy. Its members point to high American employment as a sign that outsourcing has a low effect on overall employment, and they emphasize that lower prices for consumers more than make up for any lost jobs. Additionally, the Cato Institute, as well as other groups that support free trade, views outsourcing as the best way to enrich the United States while promoting development in other parts of the world. Since the Cato Institute is primarily an academic group that is less interested in the effects of lost jobs on the families of unskilled laborers, its members tend not to be swayed by anything other than data about the performance of the economy as a whole.

Heritage Foundation

The Heritage Foundation's position is similar to the Cato Institute's: it is in favor of outsourcing because it tends to make Americans richer as a whole, and the economy stronger than it might otherwise be.

Possible Solutions

It is difficult to determine possible solutions for outsourcing be-cause not everyone believes that outsourcing is a problem. Also, many politicians who believe that outsourcing is good hesitate to create laws that would encourage it because much of the public is against it.

Most of the laws concerning outsourcing are submitted by politicians who think that it is bad for America. The solutions contained in these laws mostly work to make it more difficult for companies to outsourcing work to other nations by changing the way they are taxed or regulated. Some politicians argue that the tax code makes it easier for companies to outsource work than to keep them in America. Many of the laws that they propose attempt to remove incentives that companies might have to outsource work.
Politicians who argue against the attempts to make outsourcing difficult usually point out that it is unfair and inefficient to penalize companies for taking advantage of cheaper labor supplies in other nations. Again, however, politicians who truly think that outsourcing is good do not often say so publicly in very specific ways.

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