Greg Mankiw on Outsourcing

Harvard professor of economics on outsourcing:

Some people fear that Americans cannot compete with low-wage workers abroad, or that global competition will mean that wages will 'race to the bottom.' The truth is that we can prosper in a global economy because our workers are among the best in the world. Our real wages are ultimately determined by our productivity, and American productivity growth has been spectacular over the past three years.

Yeah, but see, we can only prosper when we workers are actually rewarded for our productivity. The thing that you're missing, Greg Mankiw, is that wages are going up, all right: straight out of the middle class and straight up to the executive suite.