What do you think the future holds for the U.S. economy?

Question

Considering almost all products are manufactured in foreign countries these days and, sold in the U.S. which results in more corporations to follow suite in manufacturing items in foreign countries where labor and, taxation is much cheaper. As businesses continue to follow suite in this method of profitability, more U.S. citizens continue to suffer from unemployment and, bankruptcies continue to increase. Not to mention a lot of companies are starting to place their customer service centers in foreign countries for the same reasons which only results in higher unemployment numbers.

The overalll question is, what kind of jobs will eventually be available for U.S. citizens as businesses continue to evolve and, take advantage of free trade and, outsourcing?

Do you think the U.S. will eventually develop into a second or, even third world nation?

Answer 1

I agree with you. How or what can make the US grow again? Every aspect of our economy is stagnate or collapsing. Many economists are saying that a lot of jobs will NEVER come back. That is scary. I don't know the History of when the British Empire failed but that might be a good source of information as to what happened to them after the collapse. On Blomberg News it showed that the US standard of living has fallen below that of Europe! Not good.

Answer 2

Like most people you are assuming that we do not "produce anything at home". Which is not true manufacturing accounts for 30% of our GDP. Since GDP is a measure of all good and SERVICES, ie finances, retail, etc etc. And our service sector accounts for about 69% of our GDP when you don't not have to be afraid of as you put it, bankruptcies and unemployment. Also if an item is sold here that was produced in a foreign country amount that the seller added to the item is apart of the GDP.



As for the last question NO, NO and NO. Development economist do not use third and second world category any more. This is becuase those categories do not take in to account many of the factors it takes to be a developed nation. They use developed, developing, and underdeveloped. That said the definition of development is a little more the GDP. It also poverty, access to health care, eduction, clean water etc. As GDP WILL not fall as outsourcing increase.



Also on a side not outsourcing is considered exported a service (labor being a service). If you look at our GDP number you would see we actually import more services that we export.

Answer 3

No, the US won't become third world by any stretch. I think you'll see a bigger gulf between the haves and the have nots, however. The US will continue to some of the best jobs in the world in this country, so the upper middle class won't be going anywhere. As we lose more manufacturing jobs, you'll see the upper lower class disappear, along with middle management jobs.



A lot of this could be fixed with a tax credit for employing American citizens. If all businesses, whether they get their labor at home or abroad, pay more taxes and then the ones who hire Americans get a credit, buying cheap goods produced by cheap foreign labor will not make as much sense on the balance sheet, and there would be no need to raise tarriffs that would end free trade agreements. Basically, the government should make it so that outsourcing doesn't pay anymore, without ruining opportunities for the US to sell its goods abroad.

Answer 4

Do not forget that the IT field is an extremely expanding area. They may take over the warehouse or factory workers from the last century. As computers become more and more important to just about every aspect of work and even living, more people are needed to monitor and repair.



Another field is healthcare. Since people are living til forever now, more living people means more nurses and doctors are needed.



I don't work in either but if I were 10 years younger, I may have went to school for IT instead of what I did even though I can't stand working in an office.

Answer 5

Your data are "selective" and deeply, deeply flawed; your question is tantamount to asking



"With the ever-increasing number of motor vehicles on the road, is America doomed to fail as more & more farriers and blacksmiths are unable to find work?"



America is now, and always has been, a nation that "manufactures" ideas, not "stuff"; the manufacturing base in the US that has actually declined is the one that used to make products for domestic consumption, and in terms of real dollars, it has declined no more here than it has all over the world.



The (rarely-discussed) REAL effect of "out-sourcing" on the US is actually quite positive; there are entire towns in India now that have a "call-center population" who work while everyone else in India would normally be in bed...so guess what? New businesses are opening there to serve those people, who now have extra "disposable income", which they spend on Starbucks, Amazon, and other US companies...



You should learn all the facts before jumping to what seems an "obvious" conclusion!



http://www.pbs.org/wnet/wideangle/episodes/1-800-india/essay-offshore-outsourcing-perceptions-and-misperceptions/71/

Answer 6

Another interesting fact is that jobs are INsourced TO America. In fact the US is first in outsourcing but it is also first in Insourcing. THe government should not pick winners and losers. It is the market that does this the best.