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  • Essay / Government and encourage wealth creation

    One of the advantages of outsourcing is that it provides a positive externality for all citizens: it reduces pollution in the country. Since all industrial production jobs are outsourced overseas, there is less need to have polluting factories domestically, leading to less pollution overall. The same cannot be said for the country hosting the offshore factories, but on a national level it brings a significant benefit to all citizens. Additionally, outsourcing is ideal for reducing business costs and is beneficial for businesses. In a CNN Money article, author and journalist Jose Pagliery interviewed a man named Mike Scanlin who decided to outsource the programming operations of his small business. “Hiring programmers in neighboring Silicon Valley would have cost him $600,000 over a year. Instead, Scanlin hired programmers in Eastern Europe for just $37,000. » (Pagliery) Although outsourcing jobs can be bad for the American people and the country as a whole in terms of job loss, it is extremely less expensive to outsource and profit from the workforce abroad at lower cost for businesses. This increases efficiency and allows businesses to grow with their surpluses.