Solutions Discussion 1
Please write (at least) four paragraphs.
The first paragraph should be a clear, concise summary of your problem (probably around 6-8 sentences), with specific and quantifiable data proving that it really IS a problem. This problem does not need to be identical to the problem you wrote about in your CP, though it should probably be closely related to it. If the problem in your CP remained too broad, however, you’ll probably want to specify the problem more, identifying something clear and quantifiable that you can actually imagine being solved.
Now, in the next three (or more) paragraphs, I’d like to you discuss possible public policy solutions for your problem, listing resources and examining what might be the best you’ve found so far.
You might begin by writing a paragraph about what type of solution you see as ideal for your problem. Why? What exactly would it do to mitigate the problem? Who—what kind of department, agency, group, or…—would do it? For example, if your problem is a problem located in California, you’ll want to think about California-specific government agencies, departments, laws, or groups that would directly relate to this problem. If your problem is national in scale, however, you’ll want to think about national policy solutions.
You’ve probably already come across lots of suggested solutions to your problem while researching for your CP. Start with these. The goal of this assignment, though, is to find specific, pre-existing proposals by members of Congress, government agencies/officials, think tanks, advocacy groups, community organizations, and academics which would begin to address your problem.
The last paragraph of this assignment might be about which solution you think is the best so far—and why.
Solutions: A Proposal for Modernizing Labor Laws
First, please read Seth D. Harris and Alan B. Krueger’s Hamilton Project (Brookings Institution) report entitled “A Proposal for Modernizing Labor Laws for Twenty-First-Century Work: The ‘Independent Worker'” (Links to an external site.). Next, revisit pp. 243-244 as well as p. 247 of the AGWR (pp. 244-246 and p. 248 in the 6th edition) where the five argumentative “frameworks” (Causation, Coverage, Cost/Benefit, Feasibility, and Comparison) as well as Counterarguments are briefly discussed.
Now, please write a short paragraph in which you summarize the problem that Harris and Krueger have identified as well as the solution that they are proposing as a remedy. Then, identify and describe a few different places in Harris and Krueger’s report where they use the different argumentative frameworks listed above. Please also identify and describe a few of the Counterarguments that they address.Surname 1
Student’s Name
Professor
Course
Date
Manufacturing Jobs Loss in the US Due To Globalization and Trade
The United States and Canada are the only two developed countries in North
America. Their economic and social structures are different from the rest of the countries in
America. The loss of manufacturing jobs has brought a negative consequence on the
employment rate. Many of the workers lost their jobs because they do not obtain any
specialized skills with their poor education; in other words, they are less competitive to
workers with higher skills and foreign workers. Meanwhile, another critical cause is new
machines. They induce a decreasing number of basic manufacturing jobs, which require
fewer skills that still exist in North America. However, there is a strange fact that the total
output of the manufacturing industry has shown growth. The biggest concern is the
outsourcing of manufacturing jobs to foreign countries, leading to an increase in
unemployment rates. The paper discusses how globalization and trade have caused the loss of
manufacturing jobs in the United States.
Problem-Failure Thesis
Globalization has been beneficial for the global economy, but it has also brought some
negative impacts, especially in employment. This has been caused by the pursuit of profits
over the creation of employment for the citizens, leading companies to outsource jobs
overseas where there is cheaper labor. As a result, unemployment has increased, affecting the
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country’s economy in the process.
Globalization and its Impact on Employment in America
Globalization has brought many benefits to the world. It has made international traveling and
communication easier, as well as improving the global economy. This means that people
could freely trade with other foreign countries in any part of the world. For example, China is
specialized in producing cheaper goods, such as clothes and shoes, on the other hand, Europe
has its advantages in producing cars, so the trade is made perfectly between China and
Europe. Both regions benefit from the trade.
Meanwhile, although, as a result, each member in world market benefits, this creates another
problem. They do not have to specialize in every area. In the US, some shoe manufacturing
companies have outsourced manufacturing jobs to foreign countries such as China, Indonesia,
Vietnam and others (Kletzer 54). By the development of free trade, it is unnecessary for the
United States to have its shoes and clothes factories, because the wage paid on local workers
is way higher than the workers in China, and this causes the price of shoes and clothes
imported from China is way lower than the price if they are made from American factories.
This is how local manufacturing workers lose their jobs and how US manufacturing
industries disappear.
Although the US is a developed country, it still contains a huge number of lesseducated populations, such as some African Americans and Mexican immigrants. Those
people need those jobs with fewer requirements for skills. Also, the loss in manufacturing
jobs increases the criminal rate in cities because whites have left cities and a huge number of
poor people live in downtown areas or cities. Cities are crowded. When less educated people
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could not find jobs, they tend to do illegal business, for example selling drugs, to continue
their life, thus brings more criminal actions like gun shootings and incidences of violence.
The loss of manufacturing jobs has brought a negative consequence on the
employment rate. Many of the workers lost their jobs because they do not obtain any
specialized skills with their poor education. Looking at Chinese society as a developing
country with millions of
manufacturing workers, it has shown
rapid growth in the economy in recent
years. China used to be heavily
agricultural countries, but its industry
is so completed in almost all areas
from the military industry to the daily
requirement. Although China is the
second-largest economy in the world,
considering its population, the average
wage is not as high as it is a developed country (Stiglitz 132). Therefore, the lower-income
level gives China the advantage of cheaper labor. This is critical in the world’s trade market.
Cheaper labor means the cheaper cost of producing anything that could be produced in both
the US and China, in China. For the same thing produced in the US, employers should pay
double even triple price as wages of workers than simply importing those goods from China.
Therefore, people in business make the easy choice, shutting down factories and firing their
workers. Import brings significant profits to them and the economy also seems to be
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benefited.
Evidence of Manufacturing Jobs Loss due to Globalization
An example of an American company that has outsourced manufacturing job opportunities to
other foreign countries is Nike Inc. Nike is internationally recognized as a quality brand
company, and also for outsourcing its production labor to other countries overseas. However,
technical methods of outsourcing labor are beneficial for companies whose main objective is
generating huge profits. The main focus of its strategy is reducing the cost of the
manufacturing
processes and
the general operation of
the business. Many
stakeholders and staff
did not, however, agree
with the views of the
organization. Most of
Nike’s products are produced overseas, especially in Asia, including countries like China,
Malaysia, Vietnam, and Thailand (Collins 34). Nike uses popular sports celebrities such as
Michael Jordan, LeBron James, Derek Jeter and Tiger Woods to promote its products,
diverting the public’s attention away from the issues of job outsourcing (Collins 34). Nike,
like many other profit-oriented companies, decided to subcontract its manufacturing jobs
overseas where the wage limit is lower than in the United States. For example, wage limit
laws in the foreign countries where Nike has based its manufacturing stations are lax, and
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therefore the company can create its compensation rates for these foreign employees. The
company saw an opportunity to make more profits within conditions of
slack employment policies, allowing them to reduce its employee compensation rates, in
comparison to that which is required by the United States constitution (Stanwick 10). Strict
laws control key components of organizations in the US, including its wage limits, workers’
age restrictions, working conditions and workplace harassment and discrimination. The
company’s strategic approach has led it to prefer foreign employees over local
employees because of the lower pay demands, enabling it to cut labor costs and make more
profit.
Above all, Nike’s subcontracting plan takes many manufacturing
employment opportunities away from American citizens. They have creative skills and
knowledge and be trained to help the company produce quality sports products. As a
consequence, Nike’s decisions make it seem like an organization that does not care for
the interests of its government or people. Many people wanted and expected Nike Inc. to
keep all of its manufacturing bases in the US so that Americans fill all the employment
opportunities. This will reduce the unemployment rates in the country and improve the lives
of many people, as well as the economy of the country (Stiglitz 130). Nevertheless, the
organization’s priority goal is specifically to increase profitability and reduce its costs, rather
than providing employment opportunities for as many American citizens as possible.
Impact of Trade on Jobs and Wages
Researchers have analyzed the changes of the local labor markets, especially in the regions
that are most exposed to competition from China, and noticed that it led to increased rates
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of unemployment, lower wages, and reduced labor force (Rodrik 77). They have also
reported that unemployment rates and issues of healthcare benefits increased in the
labor markets more exposed to trade competitions with foreign countries.
This situation can be represented graphically, plotting the cross-regional exposure to
increased shipments against shifts in job opportunities. Each dot represents a small area, for
instance, a commuting zone. The vertical axis indicates the change in production jobs (in
percentage) for the population within the working age range. The horizontal axis, on the other
hand, predicts how exposed the manufacturing job market of each area is to the increasing
imports. The exposure to different regions varies based on each industry’s local
weight. According to the graph’s reading, the trend line indicates a negative revelation; more
exposure leads directly to fewer jobs. The trend shows substantial patterns of variations.
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Some areas have low exposure but cause major negative shifts in jobs, but researchers
explain the statistical significance of this relationship. This is crucial as it demonstrates that
the changes in the labor market were big. For instance, many companies operate in several
regions and sectors simultaneously, and this is an example of a fact that is missed during the
regional level comparison of employment opportunities changes.
Nevertheless, recent evidence shows that the Chinese incentivized US businesses
to diversify and restructure their production. As a result, these firms closed some of their lines
and expanded them in other parts of the country (Lund and Laura 42). This shows that the
jobs that were lost in one region went to another part of the country, and not overseas. In
general, while the importation of Chinese goods might have decreased employment in some
regions and industries, they were more than compensated by job gains in the same
companies, elsewhere. This does not, however, console those who have lost their jobs in the
process, but people need to understand that the trade with China does not take jobs outside
America; instead, they only shift to other regions within the country.
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Works Cited
Collins, Mike. “The pros and cons of globalization.” Forbes,
http://www.forbes.com/sites/mikecollins/2015/05/06/the-pros-and-consof-globalization
6 (2015): 2015.
Kletzer, Lori. Globalization And Job Loss, From Manufacturing To Services. Economic
Perspectives. 2005.
Lund, Susan, and Laura Tyson. “Globalization is not in retreat: Digital technology and the
future of trade.” Foreign Aff. 97 (2018): 130.
Rodrik, Dani. “What do trade agreements really do?.” Journal of economic perspectives 32.2
(2018): 73-90.
Stanwick, Peter. “Global Outsourcing and Nike: Are they Just Doing It?.”
Stiglitz, Joseph E. “The overselling of globalization.” Business Economics 52.3 (2017): 129137.
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