Outsourcing and extinction/downgrading of Western Middle-Class

What I find to be an underrated theme in today's media is outsourcing and how it is related to the current economic crisis. Note first that this crisis does not much affect China, India and the like. Why? Because the big corporations that close branches in the U. S. or Canada to open an equivalent branch in Asia cause qualified Western workers to lose their jobs. Those well-paid jobs then mean maybe (insert big corporation name here) will save money on the payroll and present shareholders with good numbers that will have the shares skyrocket and all, but also it means that the local, Western government will have in many cases a cheque to send instead of receiving tax income related to said job “cut” (relocation would perhaps be the right word).

So the impact on the overall Western society is that when those folks/outsourcing victims try to find a new job, they usually end up with jobs providing lower wages, since the well-paid jobs have been relocated/outsourced to other nations. Again, lower tax incomes for Western governments (and higher tax income for the Asian governments also). Those workers coming back to work in a downgraded job market become part of what one may call the “new proletariat”, which could be described as a group of post-industrial low-wage workers. So Western societies end up mostly with a proletariat and an Upper-class, the latter consisting of the folks who made the job cuts (they got even richer throughout the outsourcing process, since they got a bonus for saving on payroll costs but also made profits when shares went up after the job cuts), and no Middle-class. Eastern economies in general will thus profit from the outsourcing phenomena and this will also be the case for the Western Upper-class group. Since the Upper-class does not constitute a high percentage of overall Western society, the economic impact will be negative for most workers and end up being also negative for Western governments. Moreover, in some cases the Upper-class pays even less income than the Middle-class, in terms of percentage paid on actual job income, through tax-saving mechanisms deployed by Upper-class politicians.

I should also mention that Western businesses will lose in the long run, since there will be fewer well-paid workers to buy their goods and services. An exception will obviously be the luxury goods market, since the Upper-class will have even more money to spend on sports cars, big mansions and other such products.

My conclusion is the following: the outsourcing phenomena gives more money and power to Asian economies (better-paid jobs for workers and higher income taxes for governments) while depriving Western societies workers of well-paid jobs and depriving Western governments of substantial tax income.

Maybe I missed something so do not hesitate to comment in order to rectify some elements or shed further light on some points if deemed useful.