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President Bush feels so strongly about it that he recently signed a bill forbidding the outsourcing of federal contracts overseas (www.economist.com).
Paul Craig Roberts, a former assistant Treasury secretary for economic policy in the Reagan administration and current chairman of the Institute for Political Economy, believes it is hard to see the benefit to the country whose firms outsource. He reasons that with domestic capital and technology reallocated to the employment of foreign labor, there is less to employ domestic labor. So either unemployment results or the remaining capital is spread more thinly with a decline in labor productivity and real incomes (www...
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