Stuff should be produced at the lowest cost possible - keeping quality in mind ofcourse. Lowest cost means lowest amount of resources used to produce it i.e. workers who will eat less, live for less, work for less. Not only is this good for improving world prosperity by bringing cheaper cost goods to the world, this is the best thing for the environment because we may run out of resources if we do not produce at the minimum cost. Republicans understand this part at least.
What went wrong down the way in the American capitalist model however is that the American consumer spends more than he produces. The big corps have sold him fake riches and saddled him with debt. The idea of outsourcing production should be to lower cost for everyone - the corporation as well as the consumers. In reality, however, how many have actually seen a reduction in retail prices post outsourcing? Prices either remained the same or have been increased. The obsession with profit growth forced the companies to distribute all the savings to the shareholders with none being passed onto consumers. This has to change one way or the other. One way would be to raise the personal income taxes especially on upper class Americans most of whom have large shareholdings, and reduce corporate tax. The government with this surplus revenue should look towards creating jobs and instigating growth. Infrastructure projects could be undertaken, NASA funding can be increased and so much more. This would be the win all situation.