Reply #15: Not answering the question

[salin]

expanding a shifting economy, if the jobs created are lower skill/wage jobs, does not solve the problem.

If the only job available to a systems engineer - whose field was outsourced over seas over a period of years - is fry cook, or retail sales (as the mgrs jobs were already filled by the line operators who were outsourced in the previous wave - and thus had time to take the sales and move up to local manager positions), or other lower wage jobs, then that systems engineer along with the entire sector is now engaged not in productivity (adds more to gdp), but in service (hotel clerk, care rental customer representative).

As fewer are able to consume as many goods - those industries are hit as well.

We are in this kind of cycle. How do you encourage, say, IBM from moving all of those high skill jobs to India. If the economy is expanding - don't they just say "great!" now we can make even more while we use the lower salaried workers abroad?

What policies (not broad stroke higher pie stuff) will change this cycle?