Free trade and offshoring are great!

[Warpy]

2. Sure, everything gets a little cheaper! (at first)

Then they wonder why sales on that cheaper stuff have gone down instead of up and grumble about market saturation.

It just never seems to dawn on them that they've killed the demand side of the equation. No matter how much stuff chokes the supply side and how cheap it is, people without money are not going to be able to buy it.

I don't know what's so difficult about that and why it's so problematic for these fat captains of industry to see it.

You might raise the point in class about how selling software pays eight dollars an hour, not nearly enough to afford the software, the computer to run it, or the safe housing in which to lock it up when one is out selling Indian software. Your microeconomics prof needs a wakeup call from outside the Chicago School of Economics.