Our GDP stands to get worse as our country fails to produce. It also hurts when we no longer have the incentive to improve technology. Technological revolutions are what have driven our GDP up as high as it is. Families are wealthier because we have improved technology. We have grown from being poor farmers because of investment in technology.
The whole argument for outsourcing is based on the fact that if US companies are doing well, then wealth will trickle down, and the middle class will see the benefits. The whole idea of outsourcing is to cut manufactering costs so you can use that extra money to invest in research and development.
Lets say Boeing can sell a 737 for $50 million. It costs $5 million to manufacter inside the US, and $2 million to manufacter outside the US. Now Boeing can take that extra 3 million dollars and do one of two things.
1. Lower the price of the 737 to $3 million dollars below that of Airbus.
Cheaper airplanes = more customers = more revenue for Boeing, an American company.
2. Spend that extra $3 million on research and development. That would provide more jobs at Boeing, and better technology leading to more efficient Boeing aircraft.
More efficient airplanes = more customers = more money for Boeing, an american company.
Now when countries like China want to buy medium size aircraft, they will buy from Boeing (as opposed to Airbus, a foreign company) because Boeing's aircraft cost less, and have more technology. Billions are poured back into the US economy.
ALL BECAUSE IT WAS MANUFACTERED FOR LESS!
Thank you outsourcing!!!