China isn't to blame for the so-called jobless recovery.Neither India.But those counting on exports or offshoring's efficiency to jumpstart the stagnant U.S. economy are offbase as well. The United States-and its corporations-can't rely only on running a tighter ship.

The long-run prosperity of the West Depends on the capacity of its entrepreneurial individuals and firms to creat and satisfy new consumer wants.When the new-want capacity is in good repair,job"losses"-through improvements in the efficiency of domestic production or through outsourcing to low-wage countries-enhance standards of living.If this capacity is impaired,neigher the low road of protection nor the high road of free trade will take the country in the right direction.