Stacy is right.  What it's called here is the "brain drain". Here's a thought.  There is quite a large number of people refusing to lend their brains to corporations in America anymore.  Only the youth is dumb enough to give it away.  But they have no peers to bring them up to speed. Hence the brain drain.  And it already happened.

I love your show, Max and Stacy. Thank you! Max is right here in many regards, but not all. General Electric gets all the benefits of increased efficiency. Workers get nothing. If Max is also right about American wages being roughly the same as Chinese wages, that might explain a lot about economic stagnation. Investors don't know where to invest their money for the highest return. So they just sit on it, as Jonathan Feldman claims.  Meanwhile, peer-to-peer lending is an interesting alternative, but does nothing to democratize the ownership of capital. A similar problem exists with Max's suggestion of moving money from one bank to another. To what more viable alternative should people move their money? Again, Jonathan Feldman is the 'adult in the room' who says: "One necessity for supporting manufacturing is to have things like democratic firms and cooperatives and alternative banks that we move our money into. We need a synergy between people moving their money into these production platforms to get the high paid jobs that we need."It's time to democratize our economy. Thanks again. You folks are great! 

thesiamcat (unregistered) wrote in #12 Freddy and Alan:Don't worry about Jim...he has transcended this petty world and been absorbed into the Universal Collective Consciousness (bless him)...We the people of Prozakistan thought that the intelligent reintroduction of Glass Steagall following the recent  discovery of in-your-face ec onomic criminality might provide some breathing space in which to inject some of the innovation that Stacy champions here, as it will be necessary to replace the current (broken) template. Unfortunately, it appears more likely that a back-against-the-wal l Iran might end  up introducing Glass Steagall to Israel...minus the steagall...So, more positive ideas and alternative methods of trade/interaction sounds good to us.( Perhaps not so much internet-based though.. ; )...Happy New Year to all....(especially Jim). William Davison (unregistered) wrote in #11 Stacy is right, your so wrong Max!I seen an example of manufacturing moved from the UK to India, in which the quality and productivity was so poor, that many in the company thought it was more expensive and quality was so poor that at one point even Indian customers refused to take product from the Indian factory.   My own experience of outsourcing show there is no significant cost saving, the main reason for using Indian development is its potencial as source of future customers, in the same way Jaguar Land Rover has benefited from Indian ownership. Thanks both ...and I am with you all in spirit (whatever your take on things) but languishing  in the reduced circumstances that befit an old aboriginal  Celt in what was a first rate first world multiracial mono cultural advanced social democratic country until Clement Attlee got the elbow! But just read the London Times for 3 Dec.... "Opinion" column.... in which our spirit of Clement Attlee ....David Aaronovitch...says all I could ever say and much more in an article entitled "Cosy up to China...are you sure about that?"Thanks Mr Murdoch!