Thursday, December 26, 2019

Levi Strauss s Decisions Hurt The United States Economy

In 1922, Levi’s was harvesting all materials and making their jeans in the United States. However, with time, the demand for jeans rose and materials became more expensive. Levi’s made the decision to begin purchasing cotton from another country and use overseas labor. The decision helped reduce the cost of making their jeans as well as increases the scale of production. While the 2013 production route saves Levi’s money by outsourcing production, it hurts the job market in the United States. As a result of these decisions, hundreds of jobs have been taken away from citizens of this country. The loss of these jobs has far-reaching ramifications, not only are the people who lost their jobs unemployed, but they no longer have health insurance coverage for themselves or their families. Since this segment of the population is no longer working, they are unable to contribute to the local and national economy, which negatively impacts other businesses. Although Levi Strauss’s decisions hurt the United States economy, they help the economies of other countries like Brazil and Egypt. Now there is a higher demand in Brazil to grow cotton and make fabric. This means companies that harvest cotton in Brazil need to hire new employees to keep up with the increasing demand. People who have previously been unemployed now have jobs. Consequently, they are now able to provide food and shelter for their families as well as medical care. 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