Paul Samuelson, author of the most widely read college economics text book in the world, is challenging the notion that free trade/offshoring is a win-win situation for all countries. I heard it on the radio tonight and am still looking for a link to a piece he apparently did for the Journal of Economic Perspectives in which he makes the case.
Apparently he says at some point critical mass will be reached in the technical abilities and education levels of cheap-labor countries, and the scale will tip in favor of the 3rd world, permanently damaging the US's edge in technical innovation.
He also suggests the downward pressure on domestic wages due to offshoring isn't offset by lower prices of imported foreign goods.
It's something I've suspected in my bones for a long time; I was belittled as a stupid protectionist in plenty of discussions with coworkers for those views, too. Sure is nice to have the Nation's Number 1 economist make your argument.
