http://www.businessweek.com/magazine/content/10_28/b4186048358596.htm
This is the best article that I have read that describes the problem and suggests a solution for the restoration of jobs in the US. One of Andy Grove's best examples is the ratio of Apple's and Dell's US workforce to the jobs they outsource to China. The ratio is 1 US employee for 10 off-shored workers. He also points out that Germany has been successful in exporting manufactured products while having higher hourly labor costs than the US. One of the motivations for off shoring is that F 500 companies get almost half of their revenues from international sales. The growth of middle class consumers in international markets has encouraged investment by US multinationals in the faster growing markets. Over time the US market will shrink relative to international market opportunities. Its hard to grow the US market with stagnant growth in median household income. We have been doing it with debt but that can't go on forever.
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