well, if people don’t have jobs here and the salaries are going down what do you think is going to happen to housing? or anything else for that matter? there is going to be deflation. Nobody is going to be able to afford the very products that these companies trying to offshore are selling.
Although India and China (to a lesser extent) has local demand it is not at all sufficient for American companies to be profitable, they need the American consumer to spend.
Also, $8000 is not going to get you a Sr. level software engineer in India. The going rate is around Rs. 20 lacs/yr ($40,000) with an annual income inflation rate of 15%. The savings are greatly exaggerated. I know, I just returned from India and things there are not so cheap there anymore..a 3bd apartment in Bangalore is over 1 crore Rupees ($200,000).
