CSC To Cut 1,800 Domestic Jobs, Add 2,000 Offshore Workers 1258

Nospam

You could extend the same model to the manufacturing sector -which lost its jobs to China. The blue collar worker couldn't buy any more stuff -having lost his job. But white collar workers could now afford a lot more because the stuff from china or mexico now costs a lot less.

if your cost and std of living remain the same -yes. If americans opt for a lower std of living, then their services will become compebreastive -if not in full, at least in part -and allow for bi-directional trade.

Indian economy is not predicated on outsourcing in full. The largest form of economic activity in India is farming. India exports less than S Korea to the US -which is smaller in size and population than one of its 22 states. The chinese would lose heavily -provided they do not find alternative trading partners. Their USD reserves would also go poof if your currency tanks.

it would require some compromise on your part too -related to your level of consumption, and what purchasing power people elsewhere have.

The US govt controls monetary policy -as a result of which outsourcing takes place. You need a change in monetary policy to regulate the pace of outsourcing.

..depends on how we tackle the devil.

to some extent -yes. It boils down to comparative advantage enjoyed by a given country. If we didn't have a comparative advantage -you wouldn't see jobs being handed down to us on a silver platter.

regards -kamal