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Maybe, but he is wrong. The workers assembling Toyotas are gaining market share against Chrysler, Ford and GM workers who are losing their jobs. Most foreign (and now sadly US plants) are simply assembling foreign made parts too. Seimens growth likewise has been from acquiring former US companies like Westinghouse. When the dollars do come home it usually consists of foreigners buying up US assets, not goods.

No offense intended, but I think the difference between you and Sowell is that while Sowell is a fool, he understands that he's a fool. You're analyzing the situation as if you truly believed you are capable of understanding every element of free market dynamism and forming a reasoned opinion based on that understanding. Sowell knows that this is impossible, because market forces are too complex and varied for the human understanding to account for them all at one time. Therefore, he predicates his analyses on broad principles that have been observed over time in the real world.

Milton Friedman used to illustrate this by asking his readership whether, solely on their own initiative, they could produce a common pencil. It seems simple, of course, but once Friedman is finished, you're inclined think otherwise.

Milton Friedman used to illustrate this by asking his readership whether, solely on their own initiative, they could produce a common pencil.

If I can take from Professor Friedman's lesson that the barriers to entry for manufacturing are huge - I fully concur. I live it everyday. Manufacturing is unique in its demands on intellectual skill and capital. That's why when its gone - its not coming back. The Asian currency manipulators are banking on this with enormous subsidies of their currencies.

BTW I don't think Sowell is a fool, and am normally inclined to agree with him.