We'll put more jobs in American hands.
Along with keeping more jobs within our borders and preventing corporations from moving their factories overseas so that they can pay cheap child labor and provide unregulated, dangerous working conditions, stopping the outsourcing of jobs will stimulate production within America and decrease pollution caused by oversea shipment of goods, thoroughly improving our economy as well as our environment.
Prices will skyrocket, hurting the purchasing power of the country, leading to long term stagnation and possibly a decline.
The purpose of the economy is to allocate resources most efficiently. The U.S. needs to move into new industries that innovate, not chase old forms of employment that have moved overseas. Stopping outsourcing is just a short-term fix to the pain of structural unemployment, but it is not the best solution. It is, however, one type of solution and a very political one.
Stopping outsourcing won't help, Yes it does take away U.S jobs, but because of our high standard of living, and rampant consumerism, the price of the products that outsourced jobs currently create would sky rocket. Instead we need to focus on more efficient production methods, (like using cheap, sustainable energy, and recycling to lower production costs.) We also need to focus on educating people so that they have skills that companies can't find in the countries in which they (the companies) outsource jobs to.
Could it potentially help the economy? It's a long shot, but maybe, and it entirely depends on which markets are no longer outsourced. Will it FIX the economy? Certainly not. Would stopping ALL outsourcing benefit the economy overall? Most likely not. Some of our industries should be outsourced which aren't and therefore we must subsidize them (agriculture). Don't agree? Read a book.
Higher prices, less goods, less capital goods, less production, rinse, repeat. Plenty of businesses would like to reduce transportation costs; many a small business would like to thrive. It is not cheaper labor overseas that is killing these dreams, but regulations at home that stifle the home-towner.