Point well taken in these economically illiterate times.

Some things, such as the war in Iraq, MUST be outsourced (as you call it)! Aren't you ACTUALLY referring to (SOON TO BE PRESIDENT)John Kerry's godly plan to help bring together a MAJORIY type of ALLIANCE? Don't you want true PEACE? Don't you want our National Guard and Reserve Forces to stay in the U.S., so that our Homeland Security can become a REALITY? Instead of a Bush Administration FANTASY? Look, I voted for Bush in the last election- I thought him to be the most godly candidate. But, NO GODLY MAN WOULD BE SO UNGODLY OF A LEADER AS TO HAVE CREATED THE MANY, MANY MEN, WOMEN AND CHILDREN TO LOSE THEIR JOBS, CURRENT AND FUTURE HIGH TECH JOBS, SERVICE JOBS, HEALTHCARE, AFFORDABLE PERSCRIPTION DRUG CHOICES, ETC. MOREOVER, A GODLY PRESIDENT WOULD NOT HAVE CAUSED MANY (AND STILL COUNTING)AMERICAN SOLDIERS, ALLIED SOLDIERS, IRAQI SOLDIERS AND UNTOLD NUMBERS OF INNOCENT IRAQI MEN, WOMEN AND CHILDREN TO LOSE THEIR LIVES OVER A WAR THAT WAS STARTED BY HIS BOLD LIE TO THE AMERICAN PEOPLE, AND TO OUR ALLIED FORCES! PLEASE STOP BEING A PARTY VOTER!!! I ADMIT THAT I MADE A HUGE MISTAKE IN VOTING FOR GEORGE W. BUSH. FURTHER, I REFUSE TO CONTINUE TO LET MY CHILDREN AND MY COUNTRY (AMERICA) PAY DEARLY FOR MY WRONG VOTE. PLEASE PRAY THAT JOHN KERRY LEADS US IN A MORE GODLY (TOWARD ALL PEOPLE OF THE WORLD) SAFER,MORE UNITED AND MORE PROSPEROUS PATH THAN BUSH HAS DONE DURING HIS SHORT TIME IN OFFICE!

eek! blinded by all the big letters above! Anyway, a good overview. I did a piece on economic illiteracy, and clearly the offshoring bugaboo plays to public ignorance and fear. Somehow, we free market types have to find a forum to raise the bar in this area.

Shriram mentions the Samuelson/Bhagwati debate. Samuelson's arguments aren't applicable, really, to the problem of outsourcing (see this article by economist Arvind Panagariya, a Bhagwati colleague). As to Shriram's proposed compensation and retraining pool, it introduces labor market distortions of its own. It disadvantages current employers against new and foreign ones. In other words, if company A moves 1000 jobs offshore, but company B creates (as opposed to relocating) 1000 of the same jobs offshore, company B is better off, since it benefits from all of the savings. Unemployment and retraining costs need to be met in a way that doesn't distort the market, but certainly it's in everyone's interest that they be recognized.

Melinda, sweetie

If you over use capital letters for emphasis, your message will be skipped by most of us flinching from the roar. All caps is a perfect technique for being taken less than seriously by your desired readers. I'm just saying.