Yes, our country should try to prevent jobs from being outsourced. This means that a specific business process will be given to an outside provider. One big disadvantage of this is that these businesses will lose focus of their customers, and customer service is one of the most important things a business can have.
We should always be pushing to keep jobs right here in the US to ensure everyone has access to a decent job. Outsourcing jobs was not the main idea of the trade deal, though. This trade deal was created to allow more efficient and beneficial trade with other countries, which also helps our economy. Many people look at only parts of the deal, rather than the deal as a whole.
Sanders claims to be interested in aiding the average American; however, barring companies from outsourcing cheap labor runs contradictory to this goal.
Why do companies outsource labor? Because it is cheaper to do so than it is to hire local workers. If someone is willing to work at a lower rate to do precisely the same job, why would it be advantageous to pay more, under any circumstance? Even if you don't hire American workers, that money doesn't just disappear into nothingness. If we force companies to only be able to hire local workers, that could lead to a variety of outcomes depending on the size of the company. Allow me to run through the possibilities, as backed by Keynesian economics:
Outcome A: In the case of a larger firm like Microsoft, if they were forced to only be able to hire local workers (which also bears a minimum wage), Microsoft's profits would be deeply gouged by this, while this is somehow seen as a good thing, it is not, as corporations tend to work in the best interest of their market (unless they possess a monopoly) this will lead to Microsoft shifting their operations to another country, as the marginal cost of moving exceeds the benefit of being forced to pay more for the exact same labor, consequently, prices will increase, since people will be forced to also pay a fee for importing goods from Microsoft.
Outcome B: In the case of medium size businesses that can afford to pay additional fees for labor, but cannot afford to move their operations abroad for a variety of reasons (i.E. Too expensive, they only appeal to a local market, etc.), they will be forced to increase prices proportionally to match this increased cost of labor, causing the purchasing power of the dollar to decrease, as people will have to pay more for the same good, and this can harm the business in the short run, and if this an important good, cause inflation in the long run if people are forced to buy this good.
Outcome C: In a perfectly (or nearly perfectly) competitive industry which is composed of many small firms, firms have little to no ability to change their prices and the price of their goods are set by market supply and demand. In firms which rely on local labor, anti-outsourcing legislation will have little to no effect, but in industries that require outsourcing of labor, or have inputs that do, many businesses will no longer be able to produce their goods at the same price, and will be driven from the market, thus, decreasing the supply of that good and increasing prices. In some cases, monopolies may form on goods where only the largest firms survive the anti-outsourcing regulation, since the smaller competing firms are driven from the market.
Bernie Sanders has long opposed trade deals. Sanders claims that Free Trade agreements hurt American workers. Yes, many factory workers have lost their jobs due to outsourcing, which would be difficult for anyone. However, many foreign companies invest in America, creating millions of jobs in the country. Furthermore, free trade has benefited consumers by giving them access to more affordable products. That way American consumers have more money left over to spend on other things. In short, the Untied States should not try to prevent jobs from being outsourced; because it might prevent new jobs from being created in America.
We do need free trade and an exchange with other nations, and it should be fair to our citizens. Not all jobs that are being outsourced are jobs most people really want, but there should be some limits on how many jobs major corporations can outsource at the expense of our workforce.