Oh, we still do, they're just in second and third world countries. The author of this article focused on service industries that require a physical presence in the local area ... and did not address outsourcing. I think that one likely outcome of this law will be that people will find creative new ways to move work to lower cost locales.
Maybe it we is the US its true but if you look at Germany they are a net exporter of manufactured goods and probably have an agricultural surplus so it's quite possible to get by in a modern economy.
We are not there yet. I agree it will happen, the question is when.