Originally Posted by seattlelou
Business outsource to increase profit and in some cases to survive. Tax consequences (fiscal policy) are certainly part of this equation but the rest of your assertions don't really make sense to me.
Suppose JoeBob works in a sweatshop making Members Only
jackets. Because of the reason you listed his job moves overseas to Pakistan. What do the Pakistanis do with the money we send them for Members Only
jackets? Well they buy something from us. Suppose its F16 fighters. Eventhough JoeBob lost his job at the sweatshop, someone else gets a job at the F16 factory. However if Pakistan buys US treasuries instead, Joebob loses his job and no job is created at the F16 plant.
In this simplistic example the borrowing money causes a net loss of jobs.