How Outsourcing Tech Jobs Could Deepen Income Inequality In America

In the majority of the past decade, the expansion of income inequality in the United States has always been a concern for economists and activists. Part of the reason for this gap may be that the most successful companies in the United States, especially technology companies, have turned to outsourcing a lot of low skill work. Many discussions on outsourcing focus on overseas manufacturing transfers, but the same trend affected domestic unskilled workers from security to product testing.

In a new topic of the New York Times, Neil Irwin, an economics journalist, compared the situation of the two gatekeepers. One was in Kodak in the 1980s and the other was an apple of the day. It is a company. After adjusting the inflation, the two workers received a similar salary, but at that time a powerful photographic company employee Kodak Gatekeeper Gail Evans was entitled to paid vacation and training. She was ultimately promoted to Kodak's Chief Technology Officer and is now the Chief Information Officer of Mercer, a human resources company.

In contrast, Apple's officials are working for contractors, are not an entry point for Apple employees, or are undergoing the necessary training to find a more skilled work.

Mr. Erwin said companies such as Apple, Google, and Facebook are currently using fewer employees directly than companies with similar income. This phenomenon is not limited to technology companies, but this is partially invisible and relies on more scalable digital products. Focusing on core competence while allowing others to cope with manufacturing and cleaning can reduce the vulnerability of companies. For example, Kodak offers much less work than ever before.

However, Mr Irving also believes that with the rise of outsourcing, companies can reduce support for less skilled workers and communities supported by businesses. Kodak is deeply involved with the headquarters in Rochester, New York. However, the shocking thing is that Apple mayor in Cupertino, California city has not met Mr. Tim Cook, Apple's chief executive officer at the New York Times. Staff. "

Irving's emotional report saved important warnings. Outsourcing is cruel for many American workers, but it benefits people in developing countries. Factories and call centers located in places such as India and China often serve American companies. This will promote rapid growth and free more than 1 billion people from extreme poverty. This time, it is driving the decline of inequality measures in low-income countries and middle-income countries all over the world.

Income disparity is due to China's cheap labor force, unreasonable exchange rate, and employment outsourcing. Companies are often accused of placing profits in front of workers. But they need to maintain competitiveness. Companies in the U.S. must compete with low-priced Chinese companies and Indian companies with much lower wages. As a result, many companies outsource their high-tech and manufacturing operations overseas. Since 2000, the US has lost 20% of employment at the factory. These tasks are traditionally highly paid associations.

In the majority of the past decade, the expansion of income inequality in the United States has always been a concern for economists and activists. Part of the reason for this gap may be that the most successful companies in the United States, especially technology companies, have turned to outsourcing a lot of low skill work. Most of the discussion on outsourcing focuses on manufacturing shift abroad, but the same trend affects security experts to product testers as well as domestic less skillful workers. In a new topic of the New York Times, Neil Irwin, an economics journalist, compared the situation of the two gatekeepers. One was in Kodak in the 1980s and the other was an apple of the day. It is a company. After adjusting the inflation, the two workers received a similar salary, but a powerful photographic company employee Kodak Gatekeeper Gail Evans was qualified for paid vacation and training.

Income disparity has dramatically increased since the 1970s and has attracted a lot of attention recently in the United States. Access to higher education is often considered a criminal, but the expansion of income disparity is mainly due to failure of government policy, not due to failure of higher education department. Decisions on financial and fiscal policies, including Federal and state government taxes and expenditure policies, have had a major impact on increasingly unequal income distribution in society. If the authorities wish to solve the problem of income distribution in our economy, they have policy instruments to do so.