Speaking from personal experience, I couldn't disagree more about outsourcing leading to Americans having more money to spend and invest. I've worked with many Japanese and Chinese companies, as well as European and South American companies. I know how the Global Economy is supposed to work, but it only works that way for certain people...
My last job was analyzing and implementing an offshore transfer of a product assembled in the USA to China. My analysis showed that within 5 years of transfer that total landed cost would be a wash, due to the upward trends of labor costs in China and in shipping and logistics. The company went ahead with the transfer anyway. I did my job too well, and ended up unemployed for almost 2 1/2 years, along with many of the other people I worked with. I had to cash in most of my investments while unemployed, not to maintain the standard of living I had when I was working, but to keep a roof over our heads and food on our table. I'm now working again, at another company, for 2/3 of the salary I was making before. I have less money to spend and invest, less benefits due to loss of years with the company, and 1/3 of the vacation time to spend what I do have, not to mention the loss of time I have to be with my family.
Last month I talked with a friend that still works for the company. He told me I was right, and that they were in the process of bringing products back to the USA. Due to the expense of both transfers the products will end up losing more money than if they'd stayed the course in the USA. You'd think that that would have given me some small measure of satisfaction, but it didn't; just gave me a hollow feeling...
