America has always praised and propagated free trade. Capitalism as a system took roots in the UK and the US. USA encouraged developing countries to adopt the system and even gave them aid in order to persuade them to do so, after the Second World War. In a capitalistic economy, there is a free exchange of trade, resources and technology. Trade without barriers, where private investments and private enterprises shape the future of the nation, was the mantra. The USA advocated capitalism as a system for well over five decades. Now in 2012, when the state of economy is in doldrums it does not seem to be advocating the same with the same vociferousness, as it was earlier.
The United States has today adopted a socialist style economy. The greed at the corruption at Capitol Hill is responsible for the recession that we face today. America has bought shares in many large companies which the President described as ‘too big to fail’.
Outsourcing simply means moving a part of the world, which is not the core business of a particular company to a far away country, to save on costs. American companies have jumped the bandwagon and most companies have outsourced their operations to countries like Vietnam, India and China. However, the United States is opposing outsourcing vocally. Although no steps have been taken on a pan-America basis, by the way of legislation, there have been many critics stating that thousands of Americans are losing their jobs. How can a country, which has values freedom of choice, oppose outsourcing? Outsourcing is helping American companies to save up costs. Outsourcing is helping economies of developing countries. If a ban is bought on outsourcing, America would ultimately lose out.