Free The Human Capital Essay Sample
To any country, the human capital therein remains to be a fundamental asset for continued development within the country. It is therefore important that such talent is well taken care of and maintained within a country. It is the prerogative of each country of the world also to ensure that it trains its professionals so that they can ensure that the development agenda of such a nation is well taken care off. Many countries therefore invest a fortune in its education system to ensure that they can offer the best material towards equipping the future human resources. The United States of America is one of the countries known for its elaborate training for the human resource which later contribute effectively in the development agenda. The economic might enjoyed by the country can be attributed to the well trained human capital that has been continuously been a force to recon with in various advancement. In the current economy which has been referred by Hira and Hira2 to as the knowledge economy, the value of human capital cannot be underscored. However, a trained human capital must have a place to work so that they can put into practice what they have acquired through training.
Whereas the American economy has the ability to have new employment opportunities for its trained expertise, there is a new trend that is threatening this economic stability. The wake of outsourcing and off shoring has ensured that the American jobs are being exported and there is little hope that this employment opportunities shall be returned to the needy and deserving Americans. Today, most of the manufacturing roles are done in china and the United States only gets the finished products, while India has taken over the service supportive tasks that initially offered the united sates some employment opportunities. As noted by Dobbs and Myers, today a person can make a call for reservation and booking for an air ticket but the phone gets answered in India, the reservation and ticketing processed there and the and an online receipt sent back to the client.
This paper seeks to address the issue of taking the American jobs oversees without any sign of returning them back to the Americans. The economic gains for the nation from a social- economic analysis shall be conducted to ensure that the research is not biased to one stakeholder, say the manufactures who obviously benefits tremendously due to lower wage rates that exists in the countries where they opt to take their business. The paper shall address the plight of the Americans who are looking for jobs and thus the effects of these trends shall be analyzed. The paper also examines the numerous literatures concerning the exportation of American jobs to various countries.
The issue regarding the trend of sending the American jobs to foreign countries has been researched on enormously. Dobbs and Myers examine this trend and contrast it to exportation of America. According to Dobbs and Myers, the process of exporting America has occasioned by what they call the corporate greed that is forcing this corporate entities to export the jobs to what they consider cheaper labor countries. American corporate entities therefore opt to take their manufacturing functions to countries such as china since here they can get cheaper labor compared to what they can get in the United States. This therefore ensures that there profit margins remain high since the commodity products in the United States is not made any cheaper. The end result therefore is that the ultimate beneficiary of this trend is a minority few who own huge corporations that outsource their services. Among the mentioned corporations that have adopted this cost saving measure is the Wal-Mart, the world's biggest retail chain that have outsourced most of its operations to china. Such strategies, as asserted by Congress only stands to benefit the shareholders of the major corporations at the expense of the American population.
Cota, examines this concept by looking how American vacancies are flown oversees leaving the locals with lesser choices over their work decisions. According to Cota, the new trend of outsourcing and off shoring is driving American jobs to other countries. He asserts that the jobs that are generated by the in another countries that are beneficiaries of the outsourcing and off shoring trends are technically supposed to be for Americans or remain within America as they are generated from American investments. He therefore accuses the corporate sector for being driven by greed for self benefit at the expense of many Americans who dearly deserve and need the jobs that they take to the foreigners. He also asserts that the benefits of such trends are detrimental on the long run as it is a form of giving another country undue advantages against America through giving them free loans for investment, investing for them these creating jobs for them and later buying the products from those countries. This therefore leaves the country with little benefit from such an activity hence jeopardizing the ability of America to reap some returns from the investments that it makes.
Hira and Hiraexamine the trend of exporting the American jobs and how the country can reverse the losses that it is gaining from this trend. They note that corporations left on their own cannot reverse the trend as they reap some benefits from such an arrangement. They assert that the jobs created by the outsourcing off shoring arrangements should remain under the in America as they are generated through American investment. However, since there are no hopes of commensurate returns from this job to Americans, it should be the prerogative of the government to ensure that it secures its capital from developing other nations at the expense of the country. American development should be given priority and thus this process that has made the rate of unemployment raise in America should be reversed. They propose that the government should take this initiative of reversing the trend by ensuring that they levy hefty levies towards gods manufactured through outsourcing arrangements which would mean that local manufacture would remain an appealing option to the majority manufactures. However, they fail to come up with a possible way that can be used to control service industry especially the outsourcing services done over the internet.
The Congress also contributes to this issue of exporting American jobs. Their main focus is the economic benefits that the country stands to get from this arrangement. It has been authoritatively argued that the trend can be productive if the human labor that is left jobless is used to generate more wealth and thus making the country have the final development advantage. However, critics are of an opposing view with an argument that the trends of outsourcing and off shoring are detrimental in the long run to the economic stability of American Congress. This is because the process reduces the purchasing power of the Americans as job opportunities available keeps on shrinking and the excess supply of labor makes the wages to come down. Such an arrangement therefore is detrimental to the American economy as it results to losses as opposed to profits when examined on the long run.
The research was conducted through the use of secondary sources as the main sources of data. The secondary sources utilized were both print materials as well as online materials that proved to be of valuable information concerning the topic that was under review. The secondary materials consulted proved to be of enumerable importance due to their exhaustive cover of the entire process. This therefore ensured that the research concerning the exportation of American jobs was thoroughly analyzed and the conclusions reached herein are well researched and representative of the entire process.
Findings Recommendations and Conclusion
It is evident that the American jobs have been exported to other countries through the outsourcing and off shoring trends that have been adopted by the United States. Although Miller and Cheng, cites the benefits that this process brings to the United States, he fails to look at the other side of the coin. Miller and Cheng do not look at the overall effect to the economy. The main focus that has been used to advocate for outsourcing and off shoring has shown that this process is beneficial to American corporations as they are able to earn huge benefits in terms of reduced operations costs which translate to huge profitability for the entire companies. However, this profitability is maintained by the shareholders of the companies that opt to take the outsourcing path. This therefore means that the process is not beneficial to the American populace. For instance, when jobs are outsourced and huge profits remains to the corporations, the process ensures that the difference between the haves and the have not increases. The increase is caused by lack of jobs for those that are in need of them while the shareholders amerce wealth from the huge profits that this arrangement brings unto them.
The ultimate benefits of the process of exporting American jobs have been questioned by. In his analysis of the topic, Dobbs argues that the benefits of outsourcing and off shoring are counter beneficial to the United States. He cites several issues that he says makes America loose the ultimate advantage in such an arrangement. To begin with, when a manufacturing decides to outsource or offshore its manufacturing functions to the country losses its confidentiality and trade secrets on their products. When products are manufactured by a third party, the third party gets to learn the technological processes involved in manufacturing the product. When such knowledge is held by such a company, they manufacture their own brands by only twisting the technology a little bit and start competing with the initial product in the market. A good example is the mobile phone technology which developed countries have shifted the manufacturing process to China. In reciprocity, china has also manufactured many brands of phones that compete with the products that were initially a preserve of the developed country's product. This way, it shows that the jobs that are exported to another countries cannot be regained back home fully even when there is a policy shift requiring that the operations of this companies be run from home countries since the market share for the products diminishes tremendously with the increasing counterfeits and imitation of technology.
Although Hope examines this trend as the new era of labor economics, off shoring and outsourcing do not benefit the average job seeker of the United States of America. The fact that the jobs that are taken to oversee countries should be occupied by Americans in the country is an indication that this trend may be detrimental to the average worker in the United States. For instance, the job markets is deprived some position which brings an imbalance between the available workforce and the available vacancies, with the workforce exceeding the vacancies. When this happens, the wage rate gets lowered due to the competition for the few vacancies. To worsen the matter, the fact that the technological knowhow is transferred to those that the offshore countries, the jobs cannot be fully returned to the united states due to the knowledge left behind which inspires cheaper products, while at home, the economic returns enjoyed from such an arrangement are short-lived and are enjoyed by the minority group.
It is therefore recommendable that the process of outsourcing and off shoring goods and services should be regulated to ensure that it is not counter productive to the home economy. This shall ensure that the economic advantage of the United States is maintained within the country this giving it a comparative advantage over the other countries. It is also recommended that the jobs that have already been transferred to other countries be returned back to the United States to ensure that the population of the United States gets absorbed into the available positions. There should also be regulations that decided the type of services or business processes that should be outsourced. This shall ensure that vital sources of US revenue collected from some leading industries are retained within the confines of the United States. There should also be a discriminatory tax regime that encourages and protects the locally produced products to encourage job creation in the united states as opposed to exporting this job opportunities.
In conclusions, it is evident that American jobs are going oversees and there are little hopes of ever reclaiming the jobs back to the United States. This therefore spells doom at the long-term benefits accrued from this trend of sending job opportunities oversees through outsourcing and off shoring to the American economy. Although the short term benefits are appealing to the majority of the companies that have followed this path, it should be a matter of national concern over the sustainability of this trend to the entire nations. Companies operate in pursuit of profits which the arrangement guarantees but a country's government must ensure that it takes care of the welfare of its subjects. The united states therefore must ensure that it reexamines the viability of the trend to send American jobs oversees and come up with an informed policy on the sustainability of such a trend. Such an approach shall ensure that counter productive actions are not embraced by capitalist business entities at the extent of the masses.