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It probably won't change the overall trend of things, to be broad about it, but how we manage that conversion is what is key.

There is no denying that the "trend" is chasing "cheap labor" and it will not be reversed untill the "cheap labor" market dries up. Japan was the first "cheap labor" market and it is now one of the most expensive labor markets in the world. Jobs are moving out of Mexico faster than the United States. These "cheap labor" markets are not permanent. Every one of these markets are vulnerable to the same market forces that we face here and as the expectations of the Indian programmer rise so will his demand for a higher standard of living and wage. It happened in Japan and Mexico and it will happen with India. This is no consolation to Americans that have seen their jobs outsourced but over time equilibrium will be such that the determination of where a job is done will not be based on the cost of labor but the quality of product.

see post #43

There is no denying that the "trend" is chasing "cheap labor" and it will not be reversed untill the "cheap labor" market dries up.

Or finally come to the realization that there is a WHOLE LOT of cheap labor, and hence decide not to drown ourselves in it. We should eat that elephant one bite at a time.

The difference between formerly cheap Japanese labor and China is all about size. The labor and costs and investments were contained in only an X size of place. In China resources are spread too thin.

In China it will take more money than we have to get them to that level. We can absorb small islands, not nations of billions of people.

BTW Japan is our biggest market in Asia.

Speaking of quality of products, has anyone noticed how everyday household items are of such poor quality and don't last? Take phones for instance. It is so hard to find a phone now that doesn't crap out after 6 months or so. And even baking pans, the coating comes off when you use them, and I'm talking about putting them in a 350 degree oven. It's very discouraging to bake a cake and when it comes out, it is covered on the bottom with silver colored slivers. The same with the bedding sold at stores such as Bed Bath & Beyond, where the vast majority of their products are made in China. Even sheets bought from there simply disinigrate after washing them a few times. Things are made terribly now. The Soviet Union used to be that way also, their products were famously terrible.