Gil Friend quotes what he terms a “contrarian perspective on outsourcing” by Roland Tangloo.
One snippet in the quote caught my attention – “A $1.5 billion trade deficit increases wealth in the U.S. by some $16 billion – I’ll take that trade any day.” I’ll preface by saying that I’m not sure on how much of that deficit is corporate and how much consumer. But, I think it’s a fair bet that the $16 billion coming back in is not going to the people that are losing their jobs, nor the ones that are spending the money to finance the deficit. In other words money is going out of the pockets of some to fill the (already overflowing) pockets of others.
Nothing new there, of course. But that’s the missing detail in that argument – where is the money flowing? Speaking in GDP terms does not show the full picture.