They considered the economic problems of the 70s to be excessive power of labor(greedy unions) to capital, so the outsourcing was kind of explained away as market punishment to teach them a lesson with the Thatcher/Reagan, neo-liberal economic doctrine. Of course, over this time period CEOs pay went from 50 x the average worker to 400x.
During this time period, since real wages were going down, people were told to take out their credit cards. So we racked up stupendous debt on all levels to fuel the emerging market boom. Of course, finance, that set up the debt orgy, benefited on both ends. Actually, from looking at the capital flows of the 90s(trillions), it’s pretty obvious that the top .1% interests are much more in line with the average chinese than they are with the average american. Also, it’s pretty obvious who was the major beneficiary of the housing bubble, besides finance.
Now is the tricky part, 80-90% of americans and europeans have to accept a quick few steps down(while they are being told they are in recovery) in living standard and Asia has to learn to walk on its own. Since their “growth” was one of a parasite, fueled by unsustainable debt, it won’t be easy.
