Nobel economist Michael Spence, working at the behest of the Council on Foreign Relations, has co-authored a startling new paper with NYU’s Sandile Hlatshwayo. The two did an enormous amount of number crunching and analyzing of how the US economy has been structured for the past 20 years, and in particular, they examined employment trends. It was not a pretty picture that emerged from all of those details.
Well, I guess that would all depend upon which side of the fork you’re on, wouldn’t it?
As the output and productivity of the American worker increased—a LOT, I should add—during the past two decades, jobs still continued to be outsourced to other countries with cheaper labor pools, and fewer opportunities for economic advancement presented themselves for many Americans. All the while, the $$$ for all of that increased productivity didn’t go to the worker bees themselves, it went to the top, to the capitalists and investors class. To parasites like Mitt Romney and his buddies at Bain Capital.
The CFR report’s conclusions are particularly grim for people who have found themselves slipping out of the middle class towards precarious lives and who feel hopeless to do anything about it, but it’s Marxism 101 for the economic literate.
It’s a race to the bottom and “tag” you’re it!
The take-away is this: Globalization is making U.S. companies more productive, but the benefits are mostly being enjoyed by the C-suite. The middle class is struggling to find work, and many of the jobs available are poorly paid.
Here’s how Mr. Spence and Ms. Hlatshwayo put it: “The most educated, who work in the highly compensated jobs of the tradeable and nontradeable sectors, have high and rising incomes and interesting and challenging employment opportunities, domestically and abroad. Many of the middle-income group, however, are seeing employment options narrow and incomes stagnate.”
Mr. Spence notes the benefit to consumers of globalization: “Many goods and services are less expensive than they would be if the economy were walled off from the global economy, and the benefits of lower prices are widespread.” He also points to the positive impact of globalization, particularly in China and India: “Poverty reduction has been tremendous, and more is yet to come.”
There's a lot to this article, but really interesting if you're into econ & what CFR etc are saying.
***This isn't a proponant (IMO) of marx - but more that Marx's view of the economic system wasn't far off.
Check it out if you're curious. Was interesting to think that for the last 20 years we've been working our way towards "communism".... Where as your choices are A & B - and the state "sanctions" those entities.