Good for corporate America, by lowering costs. What often isn't considered (or at least owned-up to) are the other costs: Economic costs to those who lose jobs, to businesses from whom those now-unemployed people used to purchase goods and services but cannot any longer; frictional costs of retraining displaced people to do other jobs (if available); major costs to taxpayers who, directly or indirectly, pay for unemployment benefits/welfare for the displaced. Those costs offset, to a degree, the cost benefits to corporations. There is, therefore, a sizeable transfer payment from taxpayers/workers to corporations and their stockholders. This raises a public policy question of whether government should step in and prevent or ameliorate in some manner the effects of this transfer payment (by limiting outsourcing, or by taxing corporate revenues and tranfering, via tax breaks or payments to workers). The present Administration and Congress, with its 'small government' and 'get government off the back of corporate America' policies, seems unlikely to take such action, so outsourcing will likely continue and increase, both in the manufacturing and service sectors. (Not a slam at the Administration, just an observation of its stated policies.)
