Note: if you can zoom the picture to 150% (Firefox) it will look great.
I hate Doonesbury! I have never found a comic of Garry Trudeau that I thought was funny or had any insight into the world. And I have tried by reading hundreds of his comics. So why did I post his comic here? He has finally made one that I can agree with!
This shows how the system can work for the US. Instead of "Zig" working souly on his job, he now has more resources at his disposal than his other competitors. He has now become a manager of a work force. If Zig was to get 5 egineers working under him then he would have increased his output by 5 times, increased his income by 333% (should have been more), increased trade with India and created 5 jobs, and India increases its consumption of US goods or agricultural products.
This will also increase productivity of US workers by the time difference. As Zig leaves his office and sends out the work load, his workers are busy producing and when he comes back he now reviews their work and starts the cycle of assigning tasks. It is as though the manager leaves his desk for a break and the work he assigned is all done and ready for him to assign more. This is similar to high capital industrial jobs that require 3 or 2 shifts to keep the production going 24 hours per day. Zig is able to shift work from day time to night and thus be ahead of his competition.
Also of note here:
Yesterday, Virginia Postrel posted and linked to several stories about a Public Policy Institute of California study on the effect of offshore outsourcing on the Californian economy. Postrel wrote, "The study found that outsourcing actually increases employment in California. Now the Assembly is sitting on the study."