I think your article is an interesting read, but may not accurately reflect all the underlying reasons we Americans do what we do. I certainly can not speak for all US companies, but I will say that if I could service ten companies and make ten thousand dollars, It would be to my benefit versus servicing ten thousand companies and making ten dollars. My point — there are costs associated with growth that may not be worth the effort as the growth does not positively effect the bottom line. In many cases, we may not be number one because we don’t want or need to be.
You think death of a company is a bad thing to be avoided and obsessing over 500% is short-sighted. Your take just demonstrates your ignorance. Failing companies are purchased to balance gains on thriving companies and many tech company founders today have absolutely NO interest in being anywhere near that same company even four years from now. Our tax laws here in the US are complicated and cause people and companies to do things that may not make sense to you, but there are benefits you can not see.
Concerning outsourcing — Yes, I am sure there are many cheaper persons available worldwide for many tasks, however, in our startup community our teams are uber CREATIVE, from the receptionist on up to the CEO. The creativity, teamwork, and drive are what makes our companies great (imho). The fact is, you just can not outsource commitment and passion. In my experience you can pay others to do x,y,x for less, but you can not pay them to care and you can not pay them to think creatively and improve upon a product. It is dedication, continued improvement and all-in buy-in that ultimately creates success if it is to be so. Another point — we are a capitalist country and our economy depends on our citizens having money to buy things — if we keep outsourcing our tech jobs, we don’t have anyone here with enough money to BUY anything and this is NOT GOOD. We also decrease the incentives for our young to learn tech skills and for our country long term that is NOT GOOD.
I have dealt with persons from many parts of the world and the one thing that always strikes me is how focused on money everyone seems to be. I suppose we Americans are assumed to be the same and perhaps that is where your thinking stumbles. Yes, our costs to live here are much higher than many other parts of the world, so we do need to think about certain economic realities as far as our income is concerned, but honestly, most people I meet are much more focused on the experience of creating something awesome. There is such a think as enough to go around and world domination is often not necessary.