"What effect must it have on a nation if it learns no foreign languages? Probably much the same as that which a total withdrawal from society has upon an individual." --G.C. Lichtenberg
All the current talk about outsourcing assumes something not at all in evidence: that large American corporations, which currently hold enormous sway over our economic life, will retain their ties to America. If they don't--if they take decades' worth of accumulated wealth created by Americans, and decide to base themselves elsewhere--there will be a net loss to America. All the 'in the long-run we'll be fine' arguments, notwithstanding whatever benefits to individual workers are provided by unemployment insurance and (currently insignificant) retraining programs, won't do a damn thing about it. We've only scratched the surface of the economic mobility that will ultimately be facilitated by globalization. It's but a small step from relocating individual production or service facilities to pulling out altogether.
As water seeks the lowest possible level, investment seeks the lowest possible costs. Economists, start your calculators. posted by David at 2/16/2004 11:31:00 PM ::
