A lot of folks around here have been discussing outsourcing, and its short-run and long-run economic effects. I tend to be simple-minded about it and say that outsourcing will continue until the wage in each country equals the value of marginal product of that country’s workers. Put another way, the high productivity of US workers will place a finite upper bound on the outsourcing of tech jobs.
On Friday I was going to do a long summary post of this debate that’s been going on, but then I read Tyler Cowen’s post doing the same thing, so I stopped. He’s got the goods.