Replies

Right. But his points are quite valid: competitiveness is not product A competing against product B, but cluster A competing against cluster B. And as he shows, these clusters are not easily formed, and certainly not easily dismantled (the Italian tile "cluster" has basically been around for a hundred years).

Actually, the clusters are quite easy to dismantle. All it takes is a certain number of CEOs with a follow-the-herd mentality to move them from the US to India or China.

that is why Bush could stop this flow in one week if he wanted to. He wouldn't have to actually do much, knock out the H1B and L1 visa with EOs, and then give one speech where he warns of measures coming to encourage US employment while at the same time discouraging offshoring. Let industry see that the stick is coming, and a carrot might be available, so that start thinking twice about this practice.

Bush still has plenty of time to save himself, I had always thought he was safe for 2004. But if month after month, the numbers show 50,000 fewer jobs again and again, I am not so sure.