You make great points here. The loss of jobs to overseas is painful for the people losing their jobs. If given the right re-training, they can weather this storm. Its not as easy if we are in an economic slowdown, and its harder to find replacement jobs. In normal times, its not such a big deal.

The benefits are for the consumers, who now get the product at a lower price (and can spend their savings on other products). Also, the economy will move towards focusing on more productive activities that, potentially, give the US better export products.