The flaw in your reasoning swerve is you assume there is a choice. You act as if shifting jobs "overseas" is a questions of yes or no. Unfortunately that is not how the world functions. Silverstone knows there is no choice involved, just allocation of capital and labor. As developed nations develop through industrialization and the creation of capital markets, firms' profitability here in the states (or elsewhere in the West) will erode without taking advantage of better labor pools like their competition does. Without profits there are no jobs, no matter how much you 'want' them to stay.
Sure the government can enact subsidies and market manipulation-it does it all the time. But oddly enough even this is not long term sustainable. The net effect at the very least is a massive trade imbalance and heavy dependence on foreign capital inflows to counter mounting national debt (sound familiar? It should). I wish we could just have full employment all the time and everything would be ok. But our nation's skill set and standard of living demands cannot support by import substitution type industry (what you are essentially suggesting). The "problem" of out sourcing is a problem with Americans lacking either the drive or opportunity to learn skills that correlate with our high labor and high tech society. Attacking the symptom will not solve the problem. I feel your frustration though, but it is mostly misdirected.
'truthiness'- obviously i understand reasons for outsourcing (labor costs, regulation, freeing up us manufacturing base so they can concentrate on making more hi-tech products (which are nowhere to be found) etc) so that is not the basis of my argument, assuming ignorance is applicable to kids. i am speaking from position of being exposed to actual effects of outsourcing in the business environment (not hearsay- reading silverstone?) and the results are not as simple as the general theory might dictate- only the products that CAN be manufactured by unskilled cheap labor force and not requireing special knowledge or processes must follow the trend, not high-tech stuff that is being moved there for pure profit (and which i spoke about- note my walmart/cheap socks comment in the post that prompted your response). there is a big difference here, china can't make it all cheaper AND better but our industry thinks it can (there is actually a huge movement of streamlining the processes here in us to AVOID outsourcing). i am already seeing stuff returning back here after they learned their lesson in 'quality vs price' game- you guys see it from the 'capital investment' side of profit protection, i see it from the side that is seeing the failures of outsourcing in product quality, delivery and even price, not to mention the original cost of job loss- and not every job lost belonged to a lazy dumbass. the shipping costs skyrocketed since then along with labor costs and all of the sudden the outsourcing corporations are not 'saving' like they thought they should or were 10 years ago and now they are stuck- nobody wins but the country that now has the free factory and technology provided by the us business. you should know that in fact this situation was caused by the desire of this country to be a global player on all arenas- we do not have to be price competitive if we do not want to in areas we have full control of. i said it several times- we can play 'free market' when everyone plays by the same rules- until that happens all we are doing is pillaging our manufacturing base- ask china to enforce patent protection and re-value their currency first and then we can talk about trade imbalance.
there is no misdirecting 'frustration' here no matter what silverstone thinks he says.
a real example:
a us aerospace company was selling an Auxillary Power Unit (small jet engine that powers aircraft while it is on the ground) to asian markets for years- they paid the price because they can't match the performance as our stuff is 10x better in longevity, performance and fuel consumption (coatings, ceramics, metallurgy etc.). the said company decides to move the manufacturing of the product to china to save on shipping and assembly. after production is established china copies the process, applies it to their engines and now undercuts the us company on price to the point they lose the market share entirely. "free market"? not really, there was nothing forcing them to move it there but perceived higher profits which in the end killed them. like i said- first lets make sure they all play by the rules then we can talk 'free market', pay attention to what i am saying instead of dismissing it as a 'frustrated rant' please.
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