Woah, I never suggested a totally free market place! I agree with you there 100% - we need some regulation - and the Journal would agree with you.
But - we certainly do not need regulation like you suggest you support: something akin to "an American company MUST NOT replace workers with cheaper labor outside of the country."
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if we ship off all the well paying jobs...
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Most outsourced jobs are not well paying, when compared to others in the US. And the new careers created as the result of the capitalist process are almost always not of the Wal-Mart variety. The new careers, on average, come with higher discretionary income.
As for the "morally wrong" label, that's a slippery slope. I would contest that it's morally wrong to take a job from an American and give it to another, ONLY if you believe that Americans are an inherently “more-deserving” people.
Consider two situations.
(1) An American makes $40k in tech support in Oklahoma - can drive a used Lexus, and can send his kid to soccer camp every summer. An equally smart, hardworking Indian, however, cannot find employment, and scrapes by with just enough to feed and clothe his kid.
(2) The American has his job outsourced, and, for the sake of argument, can only find a job that pays $30k (assistant manager at the local department store). He leads a relatively similar life as before, but can no longer afford to drive the used Lexus, or send his kid to soccer camp. The Indian gets that outsourced job, and is now making $12k a year (of course, the rupee equivalent, not dollars) - enough so his kids can now go to school and get decent medical care.
Which situation seems more morally appropriate?