Perhaps Bush's tax cuts have left Industry so flush with cash in a period of low demand that investment overseas has become far easier than before accounting for this rise in outsourcing. It takes money to start new plants and facilities overseas. Tax cuts to the consumer stimulate spending in the US which then stimulate investment, tax cuts to business stimulate investment which may or may not be in the US. In the first case the cut has a direct effect on the quality of life and the American economy. The latter is a delayed effect with potential unintended consequences.

Lot's of US companies were investing in China already, why not move extra jobs there with extra cash? India? Cheap talent galore. If you had cash during a period of low demand as a business would you would not invest in more capacity, you would invest in cost reductions. That often means fewer jobs by increasing automation or worse moving even more jobs overseas.

Of course the plan was to allow lower prices over seas to increase demand while maintaining profits. Which does it look like happened?

Regards,
Mark