I wonder if Mr. Thurow has anything more current than that to say on this subject, particularly when you consider that on two key points he raised -- the prospects for a second Bush term (". . . if the Bush administration doesn't do something, there won't be a second Bush administration. Professional white-collar outsourcing is so scary, and so many of the people affected are Republican voters, that the issue is going to blow Bush out of the water") and interest rates on 10-year Treasury notes -- he was totally incorrect.
I would take his other rosy scenario as equally suspect, of a 'soft landing' for the U.S. economy with everyone just catching up to us in standard of living, rather than dragging us down.
If you actually followed his policy prescriptions...which are pretty standard Keynsian solutions...you will definitely have major disruptions negatively to the U.S. standard of living. General currency debauchment combined with tax increases on the SHeeple. His argument that they would only be short term is typical big government denial...yeah, right.