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EPI study on globalization and wages |
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Written by Stumo
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Wednesday, 17 October 2007 |
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The Economic Policy Institute's Josh Bivens released a study showing globalizations impact on wages.
These are the summary findings.
• In 2006, the impact of trade flows increased the
inequality of earnings by roughly 7%, with the resulting loss to a
representative household (two earners making the median wage and
working the average amount of (household) hours each year) reaching
more than $2,000. This amount rivals the entire annual federal income
tax bill paid by this household.
• Over the next 10-20 years, if some prominent forecasts of the reach
of service-sector offshoring hold true, and, if current patterns of
trade roughly characterize this offshoring, then globalization could
essentially erase all wage gains made since 1979 by workers without a
four-year college degree.
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In the news
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The following, written by Professor Ralph Gomory of New York University's Stern School of Business and former President of the Alfred P. Sloan Foundation, appeared in the Huffington Post on December 16, 2008 and can be accessed here.
Autopia: A Tale of Two Bailouts
Many Americans are struggling to understand how our government makes decisions on corporate bailouts. When Wall Street companies spent years investing in mortgages that turned out, essentially, to be garbage, the government rushed to bail them out. But when the auto companies neared a similar fate, the government was prepared to stand by and let them perish.
To aid in understanding this situation, it is helpful to look at an example from a galaxy far, far away.
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