Originally Posted by BucEyedPea
Not necessarily! It forces businesses out of the country that even wanted to remain in America because the politically connected corporations drove this pressure to outsource downwards. It was not a move by markets, but by govt.
Yes, lower costs do result when the international division of labor is involved, but it happens slower and from the players inside America being able to negotiate their wages and what they pay for things in a true free-market. It allows the players to adapt and happens more slowly including replacement jobs. Wages are not the only indicator of rising wealth if things are cheaper, but you can't ignore the role of the Fed Reserve weakening our dollar as the main reason for lowering standards of living and purchasing power which is ignored. Ross Perot was right though, these alleged free-trade pacts just created a giant sucking sound as jobs left rapidly. And it's a ne0-mercantilist state-sponsored sucking sound. Corporate socialism for losses and capitalism for profits.
But to the original point... It sounds like in your post, you would agree that the blanket statement that outsourcing destroys jobs is a big exaggeration. There are a lot of forms of healthy outsourcing.
So I think the point you're making is about terrible policy decisions, not outsourcing itself. Bad outsourcing is a product of those terrible policy decisions.