The Reason Why Corporations Continue to Outsource Jobs

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Corporations in the west started to dismantle labor unions in the late 1970’s and were successful in their pursuit as the economy at this time was starting to become globalized which allowed companies to threaten to migrate production overseas when workers threatened to strike or refuse their working conditions. This tactic forced labor unions to dissolve as refusal could and most likely would result in complete job loss for every member of the group. The administration of President Ronald Regan ushered in deregulation alongside multiple income tax cuts for corporations and wealthy individuals, and as a direct result of these policies, corporate shareholders began to exercise more and more influence over the way these companies conducted business. Feeling the pressure and scrutiny of Wall Street, businesses began to view labor as expendable and as an expense which needed to be offloaded from balance sheets, leading to many jobs being outsourced within a relatively short period of time, to more impoverished nations which had weaker labor laws but most importantly to the participating corporations, these states also had and continue to have much lower minimum wages which is the primary driving factor as to why outsourcing continues to occur in virtually all industrialized countries

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