Blog of Q's

“April’s job growth is consistent
with the depressing pattern of US employment growth in
the 21^st century: The outsourced US economy
can create jobs only in domestic nontradable services.
…

Offshore outsourcing is a new
phenomenon that has received little attention from
economists, who mistakenly view offshore outsourcing as
just another manifestation of the beneficial workings of
free trade and comparative advantage. In fact, offshore
outsourcing is the flow of resources to absolute
advantage. Economists have known for two centuries that
absolute advantage does not produce mutual gains. Unlike
the operation of

comparative advantage, absolute advantage produces

winners and losers.

China and India are winning. America is losing. It
is as simple as that.”