When we out-source we are creating a
middle-class and the potential for democracy because out-sourcing from
our vantage point is importing services and from the point of view of
the country that does the out-sourcing work it is industrial
exporting. See the previous blog on the subject of industrial exporting and the
creation of a middle-class. Industrial exporting creates meritocracy, resource efficiency and lowers costs for all involved.
The countries that are today's healthy
and solid middle-class democracies are all countries that became what
they are by creating industrial exports to the major industrial
nations. Think of post war Japan, think of Taiwan and South Korea
which also created industrial exports for Japan. More recently the best
emerging example is China. Brazil, Chile and Mexico are industrial exporters to
the industrial world, particularly the U.S. and they are the few Latin
democracies with a growing middle-class.
The more we import industrially produced products from the world, the more we create middle-classes and democracies. We out-sourced to Mexico in an area call maqiladoros and we should out-source everywhere and everything we can.