E-tek, building codes differ wildy, specially through-out the US. So their system is most likely much different, and likely a lot less stringent then ours. Living in a climate like ours (With hot summers and extremely cold winters), we've got requirements here that are more stringent and complicated then most of Canada. Even hope over to alberta, the materials are the same, but the general process of sealing and caulking is different. (Some say that's why there are so many mold remidiation companies there vs. here.)
I hear ya, but there are still generally accepted building practices to make a building act like a complete system. Whether they are doing it or not is a different story. If the OP (who is in Wisconsin I beleive), wants to do it right, he should have a VB on the warm side, so as to avoid any moisture going though the wall and soaking the insulation, making it ineffective and creating mold. The only places in NA (geographically) you don't use a VB - or move it to the outside of the wall - is in the SOUTHERN-most US sates.
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The idea behind the vapor barrier is to keep moisture that develops inside the house inside. Without the barrier, here is what happens inside the wall in winter: Warm, moist air moves through the drywall and into the insulated wall cavity; at some point inside the cavity it becomes cold enough for the moisture to condense, soaking the insulation. The vapor barrier prevents this process. In older homes, the siding and sheathing were so loose that air easily migrated out before the moisture condensed, but that is no longer the case so the barrier is essential.
And it's easy to forget that the process of insulating (anywhere in north america) was way different pre-1980's/90's versus now. Homes done with lathe and plaster usually did not have an official vapour barrier, but most believed the plaster did make up for it a great deal. Where as now our standard sheet-rock and mud is much less 'hardy' a system then lathe and paster.
As per above, just the opposite is true. Older homes where built so "loose" that they allowed a ton of airflow through the walls. This allowed any moisture to go through negating the need for a VB - BUT, it also let heat out (winter), or in (summer).
Today, the standard is the following (from inside to out): Paint, Drywall, Vapour barrier (caulked and taped), insulation, OSB, Tyvek, siding. Period. In the Southern-most states it's the same, but they move the VB to the outside wall to stop heat/moisture from coming IN and soaking the insulation (Only in a very small geo. area they may not use any VB).
This gives you a sperate building envelope where you can control the environment independant of what's occuring outside. BUT, you have to CONTROL it - with air makeups, fans, heating systems, AC and dehimidifiers, depending on your location.