7. The quote from the 2004 Economic Report of the President generated a lot of controversy that year. The chairman of the Council of Economic Advisers, N. Gregory Mankiw, made the following additional comments in a speech while presenting the report: "Outsourcing is just a new way of doing international trade. More things are tradable than were tradable in the past, and that's a good thing." Those statements quickly led to reactions from both Democratic and Republican members of Congress. Tom Daschle, the then Democratic Senate minority leader, said, "If this is the administration's position, they owe an apology to every worker in America." Dennis Hastert, then Republican Speaker of the House, said, "Outsourcing can be a problem for American workers and the American economy." John Kerry, the 2004 Democratic presidential candidate, referred to businesses that offshored as "Benedict Arnold corporations." In response, Mankiw clarified his earlier comments: "My lack of clarity left the wrong impression that I praised the loss of U.S. jobs." You might feel that these statements just represented a squabble between politicians trying to score points during a presidential campaign. Statements about outsourcing and offshoring are made during many presidential campaigns, including in 2016 when Donald Trump said that he's "never eating another Oreo again" because its parent company is "closing a factory in Chicago and they're moving to Mexico." With all this media attention, it is worth trying to sort out who gains and who loses from offshoring. a. Why does Mankiw say that "outsourcing is a good thing"? Who is it good for in the United States? Are there overall gains for the United States? Explain with a diagram. b. Paul Samuelson is quoted as saying that there is no "necessary surplus of winnings over losings" due to offshoring. Use Figure 14 of lecture 4 to carefully explain why Samuelson says this.b. Paul Samuelson is quoted as saying that there is no "necessary surplus of winnings over losings" due to offshoring. Use Figure 14 of lecture 4 to carefully explain why Samuelson says this. c. Go online to find out whether Nabisco still produces Oreo cookies in the United States, whether jobs are being moved to Mexico, and why