Outsourcing began for a few reasons. The most important one is it is cheaper to make it there and bring it here.
The question is why
1. The industries that rely on labor unions made promises that it could not keep in the long term. Pensions, health care, etc. They did it at the time because by the time they needed to cash it in, it would be decades.
2. During the past 50 years, the focus of laws have been to give workers more and more rights. By doing so, it made it more and more expensive to do business. You can either have protection of business rights or protection of worker rights. There have been too many entitlements.
3. The government taxed labor in ways that the actual person does not see it directly. Social security has a component that the employer pays on behalf of the worker. There are other taxes and compliance costs that the employer that the employee does not have to pay for.
4. Then add in things like OSHA regulations which are ridiculous. They harass and bother employers all the time.
5. The biggest hurdle to all of this is changing the laws so employees see how much it costs them to work where they do. We need to force employees to write the check for all the expenses relating to their employment. I say do it in October before elections. Have the employer pay them the funds and make the employee write checks for health care costs, health insurance, social security taxes, medicare, medicaid, etc.
The important thing to understand is when people have to pay things they treat it differently than if it is free. Note the free to them is actually passing the payment on to somewhere else. When you have $5 deductables for doctor visits, people will go more than if they they had $30 to pay.
People are so entitled to all they get that it is not likely we will change it.
EDIT: I really feel sorry for those who are blaming a conspiracy on this one. It is all about economics. It costs less in China because it costs so much here. That simple. People can really see the difference between conservatives and liberals/democrats on this one. Some democrats here sit around and blame everyone for their problems, instead of looking inward at what the party has done to force companies to leave.
For all those who say companies are greedy than you must be greedy for going to Wal Mart to buy something cheaper than another store. You want to criticize companies for greed to save money than you are just as guilty.
In a free market system like what we have, if you do not do it, someone else will. That is free enterprise.