On MMO-C we learn that Anti-Fascism is locking arms with corporations, the State Department and agreeing with the CIA, But opposing the CIA and corporate America, and thinking Jews have a right to buy land and can expect tenants to pay rent THAT is ultra-Fash Nazism. Bellingcat is an MI6/CIA cut out. Clyburn Truther.
Unless I'm reading that wrong it's saying that those that are not in the upper quintile, are either seeing stagnating wages or decrease in wages, which in turns reflects on their purchasing power, because the price of essential goods is increasing. So I think it supports my st
Working at a factory> working at walmart/burger king/ Mc
Trade liberalization affects domestic job markets.
- They are not underpaying their workers, it's just how labor market forces react to increased competition.
- Your tax punishes companies for outsourcing jobs.
no one cares about the little guy.
r.i.p. alleria. 1997-2017. blizzard ruined alleria forever. blizz assassinated alleria's character and appearance.
i will never forgive you for this blizzard.
Trade liberalization has never benefited anyone in the past century but the already wealthy few.
I find it interesting that people on the right are all for the "free market" and against government protectionism, but the moment new globalist trade deals go into place that challenge the viability of American businesses, those same people are all against the free market and all for protectionism.
That said, I'm a lefty economist who believes that regulations and certain amounts of protectionism are required facts of life in the global marketplace.
Krugman is a trade economist, and he's right.
1. Trade liberalization is a good thing in principle but has significant distributional impacts.
2. So optimal policy is trade liberalization plus government making the winners compensate the losers.
3. Such compensation is opposed by Republicans who want to cut taxes on the rich and gut the welfare state, but supported by Democrats.
4. TTP isn't even about trade but rather intellectual property protection.
5. Overall, this is a small economic issue, not a huge deal.
So the reason trade liberalization doesn't work is because of Republicans.
Also, most average middle-class people work in services, not manufacturing, and probably benefit slightly from trade liberalization and cheap consumer goods.
Last edited by paralleluniverse; 2016-10-31 at 03:46 PM.
On MMO-C we learn that Anti-Fascism is locking arms with corporations, the State Department and agreeing with the CIA, But opposing the CIA and corporate America, and thinking Jews have a right to buy land and can expect tenants to pay rent THAT is ultra-Fash Nazism. Bellingcat is an MI6/CIA cut out. Clyburn Truther.
Simply from graphs, we see no decrease. Not to mention that it isn't a very good reasoning at all, because there are many more factors affecting wages than just globalization.
Maybe. But why would people go from factory to Walmart, rather than another factory or other jobs of similar, or higher, level?
Yes, but not directly. Rather, it introduces a new variable to it, and the domestic job market reacts on it. The way it reacts on it isn't defined by trade system, it is defined by the domestic economy.
I fail to see how, when outsourcing makes them pay the same tax as employing native citizens.
Really?
ctrl + g : wage fall
I agree, globalization is not the main driver, but it's certainly a driver of it.What gains have been made, have gone to the upper income brackets. Since 2000, usual weekly wages have fallen 3.7% (in real terms) among workers in the lowest tenth of the earnings distribution, and 3% among the lowest quarter. But among people near the top of the distribution, real wages have risen 9.7%.
Because there are no longer any more factories in their area, and the costs of moving to places where there is economic prosperity can blow years of their income. We've been through these already.
Too many jobs were outsourced too fast, nothing came to replaces those jobs because of the abrupt change, so people had to take what they had. Those that could afford it, went back to college, others retrained to become truck drivers, the rest had to take jobs at Walmart.
Ok, so I'll repeat what I understood of your system.
Firms gain X$, pay their workers Y$ and pay in taxs Z$
So companies outsource jobs, reducing overall wages and generates profits for the firm.
Firms gain X$ + A$, pay their workers Y$ - S$ and pay in taxes Z$, where A>S
Under your system, they add S$ to the amount of taxes they pay. So they are paying more taxes, because they outsourced. That to me sounds like a punishment for outsourcing.
Last edited by NED funded; 2016-10-31 at 11:44 PM.
Not to sound too "SJW" or anything like that, but I feel like the flip flop on globalization has everything to do with how the structure of international power dynamics has shifted. In the past, free trade meant that American businesses could flood in, access cheap raw materials, and force locals to pay exorbitant prices for finished goods. Nowadays, third world countries at least have some semblance of infrastructure and expertise, as they are no longer ruled by colonial regimes with an interest in purposely suppressing their economic development, and so can compete against American workers. We leveraged our global power to improve living standards at home for so long, that people became accustomed to it as the natural order of things and simply can't comprehend a situation where this dynamic is disappearing or even reversing.
I've linked this in similar discussions but it is always relevant.
http://gregmankiw.blogspot.jp/2009/0...sts-agree.html
The vast majority of economists of nearly every school think that free trade is a good thing. The idea that trade liberalization hasn't helped anyone but "the wealthy few" is so ridiculously ignorant that I already know that your knowledge of economics is non-existent.
To give you the most basic example of why this is wrong:
A product that is produced overseas for cheaper and is sold for cheaper in the US as a result is good for the consumer.
A product that is produced domestically for more and is sold for more in the US is bad for the consumer.
There is a net gain with free trade that almost all economists agree is good. Paul Krugman famously quipped "If there were an Economist's Creed, it would surely contain the affirmations 'I understand the Principle of Comparative Advantage' and 'I advocate Free Trade'."
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Japan is a good example of a country that blocks certain imports to protect some of its weak industries and results in consumers paying ridiculously high prices for commodities which would be better off imported.
Last edited by Deletedaccount1; 2016-11-01 at 03:33 AM.
How many middle class jobs go to China?
Around 12 million Americans work in manufacturing which is the primary industry which can be outsourced.
That is about 6% of the American workforce. So some number of people who work in that 6% have their jobs threatened by outsourcing. Not all of them, probably not a majority since there will still be 11 million Americans in manufacturing in 2024.
So roughly 1 million people or so benefit by having protectionist policies in place. That doesn't seem like much of a net benefit for the middle class when free trade agreements make everyday products cheaper for everyone.