In
What Went Wrong? (the book I am still reading that continues to give me things to think about), George Tyler discusses the impact of globalization on the economies of northern Europe and Australia (what he calls the 'family capitalism' countries) and America (home of Reaganomics).
He shows that globalization can actually benefit an economy, as it did Europe, or hurt an economy, as it did America, depending on the steps taken to either profit or fail.
If an economy focuses in training workers and providing new skills, it can maintain good levels of employment with the added bonus of the jobs being better. If an economy does not prioritize these things, it will see jobs disappear and workers sit idle.
While the American system has taken the latter path, the northern European countries have taken the former. The ratio of skilled jobs to unskilled jobs in these economies has increased faster than in the U.S. (where there has been no real difference between the increase in skilled vs. unskilled jobs). (The exact figures are in the book, which is at work; I will add them to the post sometime this weekend.)
[ABE]The figures, as I promised: Starting with 1980 values as 100%, the 'Index of skilled labor employment' increased to 125% in the U.S. and 157% in Europe. Again, starting with 1980 values at 100%, the 'Index of
unskilled employment' increased in the U.S. to 121% (almost the same increase as skilled jobs) but decreased in Europe to 86%. (pp. 320—321). While the U.S. was treating jobs as jobs and sat around losing them to foreign labor markets, Europe was taking advantage of globalization's displacement of unskilled workers by training them to meet the demands of skilled positions.[/ABE]
What it amounts to is some economies choosing to take advantage of globalization as an opportunity to pass off low-skilled, less-desirable jobs to others and utilize the freed labor force for more desirable skilled work (= more profitable).
While America continues on its path of Reaganomics, globalization will offer it nothing but more misery. But if American's choose family and societal welfare over corporate welfare and the welfare of the few, the world of globalization could be an amazing opportunity for prosperity and the ushering in of another golden age of American economic dominance and leadership.
Edited by Jon, : No reason given.
Love your enemies!