This is totally correct point. I don't defend the correctness of idea of outsourcing and I'm in contrast but the author's views on this issue is different. I have read about many interesting debates about benefits of outsourcing and most of the pro-s seem to be fake as well. But the numbers which are agreed upon to be reflecting the economic well being of society speaks for Bagwatti and Greenspan. Whether we believe or not is out deal. I don't agree personally like you. There is a very related debate with Alan Greenspan in congress. Please see:
[media=youtube]nBnKh6B2cMw[/media]
Ilya, I understand and share your opinion but it is rather unrelated to the topic in the sense I've been pushing. We are talking about the institutional transition from manufacturing to service based economy which we are all seeing. Of course that programmer who lost the job and has been unemployed for 9 months is not expected to be "retrained" and reemployed in one-two days, but those 5-6m workers who lost the job give rise to the pattern that they should seek different path to follow and abandon manufacturing based skills for their own well-being. This pattern emergence has been described in the Bagwatti's book where he states his criteria why he considers outsourcing and generally globalization beneficial. Whether we agree or not is another topic. I personally don't agree and share the point you provided. Industrialized nations need to be relied on manufacturing.
Extract from the description of the book:
He sets out to prove that the antiglobalization movement has exaggerated claims that globalization has done little good for poor countries. For example, supported by statistics from the Asian Development Bank, he argues, astonishingly, that in China the "aggressively outward economic policies" that characterize globalization reduced poverty from 28% of the population in 1978 to 9% in 1998. Nevertheless, Bhagwati does not advocate total laissez-faire economics and recommends that continued globalization should be "managed," prescribing policies he believes will "reinforce and ensure" its benign effects, such as taxing skilled workers who leave poor countries for jobs abroad, using nongovernmental organizations as corporate watchdogs, slowing financial liberalization and loosening intellectual property safeguards.
In the video we hear the consequences which directly or not have been caused by such blind outsourcing policy when corporations are seeking low costs, less regulation, etc. and "escape" the domestic country regardless of consequence. But who cares...
