[DustyMoment]

While I agree with the contention that the jobs belong to the employers, not the government, there is a serious disconnect with the economic model involved in exporting American jobs.

Let's evaluate some facts. For decades, American workers have been rated as among the most productive in the world. This productivity has driven a national economy that has allowed us to become the world's largest consumer nation.

When American companies export jobs to countries with lower wage scales, several things need to happen. The workers whose jobs were exported obviously need to obtain new ones. For many, that means accepting positions that pay substantially less than they were making in their previous occupation. Since they make less than they used to, they must lower their standard of living. Some may end up declaring bankruptcy since they can't support they debt they accrued from their former salary with their current lower salary. As more American workers readjust their standard of living, they begin consuming less; fewer luxuries, more necessities. At some point, this readjustment begins to affect our ability, as a nation, to maintain our current position as the world's largest consumer nation. The focus will shift to other countries better able to purchase more goods while America, facing its new reality, will find itself unable to negotiate previously lucrative prices for consumer goods.

Now, IF (a big IF), American corporations were to lower their prices for goods on an equivalent level to reflect the lower incomes many workers are having to accept after their jobs have been exported, we could likely retain our position as the world's largest consumer nation. But, that's not what we are seeing. We are seeing many high-paying jobs being exported to low-wage nations and the folks who formerly held those jobs having to take lower paying jobs while the prices remain high. The ultimate end result is that over-paid CEOs will rake in higher salaries in the short-term until the economic bubble bursts from the devastating effects of the domino theory. At that point, American CEOs will have successfully levied America into Third World territory and we will fall from our current position as world leader and a free nation.

We don't necessarily need government intervention into the job market, but the corporations exporting those jobs should be required to demonstrate that the offshore recipients of those jobs are as capable as Americans at performing the same jobs with the same efficiency. Anecdotal evidence disagrees with the contention that offshore workers are as efficient and productive as American workers. It remains to be seen how long this trend will last. When NAFTA was passed, many companies couldn't wait to ship jobs to Mexico. For most, after dealing with poor quality in the products sent to Mexico for manufacture or assembly, the jobs were quietly returned to the US after a couple of years on average. We may just have to wait this one out.

[Taliesan]

Since they make less than they used to, they must lower their standard of living. Some may end up declaring bankruptcy since they can't support they debt they accrued from their former salary with their current lower salary. As more American workers readjust their standard of living, they begin consuming less; fewer luxuries, more necessities.

You are assuming there is no other subset whose consumption increases.

[Mr. Jeeves]

We are seeing many high-paying jobs being exported to low-wage nations and the folks who formerly held those jobs having to take lower paying jobs while the prices remain high.

Well, that's the American's consumer's own fault. When we start refusing to overpay for junk, prices will come down. Of course, the stock market will then crash, the Fed's Ponzi scheme will be exposed, a second Great Depression will begin, and Bush will lose...so maybe we had better just keep on playing "let's pretend" for a while. That seems to be Greenspan's plan.

[Jim Noble]

. The ultimate end result is that over-paid CEOs will rake in higher salaries in the short-term until the economic bubble bursts from the devastating effects of the domino theory. At that point, American CEOs will have successfully levied America into Third World territory and we will fall from our current position as world leader and a free nation.

Good analysis up to this point, IMO.

What will happen is a deflationary depression (virtually certain).

After that, nobody knows.

After fifteen years of deflation, unemployment, and low production, we kicked the world's ass and sent our armed forces into Tokyo Bay and Berlin.

We could do the same again, OR lose our status and our freedom, but the latter does not follow from the former.

[valkyrieanne]

When NAFTA was passed, many companies couldn't wait to ship jobs to Mexico. For most, after dealing with poor quality in the products sent to Mexico for manufacture or assembly, the jobs were quietly returned to the US after a couple of years on average.

Actually, jobs outsourced to Mexico through NAFTA are now being sent to China - which underbids the Mexicans in the cheap labor department.

The best labor rate for corporations: slave labor.