No, they're not exporting their jobs, just their entire economy. What is the unemployment rate in Europe? Sure, the standard of living is protected - with mandated 5 week vacations and free universal day care. It's the socialist dream. So why is unemployment in Europe twice the US rate? hmmm...
By the way, the Europeans are outsourcing too, including from Western to Eastern Europe. They are just doing it discretely. Most likely labor leaders are complicit. They recognize that if Europe does nothing, it will be entirely marginalized economically. The European socialists are just trying to do the bear minimum that will allow them to sustain the welfare state and to make up the difference using the "oil for palaces" program, etc.
Perhaps thats one of the reasons that unemployment in Europe is about double that in the US.
You make an interesting point. Ironically, many of the yuppies now losing their jobs were riding high in the tech boom four or five years ago, and sneering at the concerns of workers in old-line industries like steel and textiles. 'Adapt or die' was their mantra. They were creating a Brave New World in cyberspace and cared little for the likes of Joe Six-pack. I wonder how they feel now.
On the other hand, it is true that in many cases the cure for such problems is worse than the disease. Europe is Exhibit A. Yes, if you are employed, life can be fairly good. You have six weeks of vacation per year, and a decent income. However, you pay the price in high taxes. Employed workers have to support the armies of unemployed workers such policies produce, as uncompetitive industries wither and die.
Change will come and globalization will progress, and there is little any government can do about it that will not make matters worse. Government can do no better than to support retraining programs, keep taxes low, and stay out of businessmen's hair as they fight these battles.
-ccm