Due to the quick fix of outsourcing, we are making the rich richer and the poor poorer. Our middle class is disappearing and in an effort to reduce costs, companies are hurting the portion of the population that drives consumerism and therefore hurting their own business.
The consequences of America's innovation-only policy run far deeper than simply trade deficits. The wholesale transfer of production offshore also has weakened the nation's job-creation engine, crippled its ability to bounce back from recession and seriously eroded not only middle-class prosperity but our ability to invent the products and medical advances of tomorrow. Because our economy has cut out manufacturing in order to specify on service, research and innovation, we have lost a significant amount of business and profit from the manufacturing industry. The proponents of this innovation-only economic model delude themselves if they believe that high-tech manufacturing is of little or no value. We live in a world of things - from cars and cutlery to computers and cell phones - and somebody still has to make them.