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In spite of the evidence just shown, Paul Craig Roberts, a former Reagan administration treasury official, declared at a Brookings Institution conference that “the United States will be a Third World country in twenty years.” His prediction was based on the idea that entire classes of high-wage service-sector employees will eventually find themselves in competition [...]

International trade has been around for thousands of years. That means that the concept of outsourcing is certainly not new, even though the term seems to be. After all, the exchange of services between countries is a part of international trade. In any event, if we decide to restrict this type of international trade in [...]

The concept of outsourcing is simple: Instead of hiring American workers at home, American corporations hire foreign workers to do the same jobs. For example, some of these foreign workers are in India and do call center work, answering technical questions for computer purchasers.

The conclusion we draw from this tale of two cities is not that the people who lost jobs in Buffalo should have become self-employed street vendors. Instead, we infer that, particularly in developing countries, a thriving underground economy can help generate wealth that would not exist without it.

When they departed, they left behind empty houses and a decaying urban center. In India, mobility is far less than in the United States. Hence, one might expect to find that Ahmedabad became plagued by high unemployment when the mills shuttered, perhaps even beset with civil unrest. In fact, Ahmedabad is thriving-all because of its [...]