Quotation of the Day…

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… is from page 196 of Arnold Kling‘s excellent 2004 book, Learning Economics:

[O]utsourcing is symmetric. For every job that we outsource to India, India outsources a job to us. That giant sucking sound you hear is jobs being created in the U.S. to meet the needs of Indian consumers. That is guaranteed to happen. The Indians are not just going to smoke the dollars that they get when they are paid by U.S. firms. They are going to spend those dollars, and that spending ultimately will create jobs.

DBx: Yes.

The spending Arnold refers to includes, of course, investment: An Indian (or another foreigner) can use a U.S. dollar to buy American exports or to invest in America. Either way, jobs in America are created.