Nobel Economist Michael Spence - Offshoring has Destroyed the US Economy
Nobel Economist Michael Spence is saying that only jobs in government, education and health care and the like have grown in the USA while tradeable jobs that produce tangible goods and services have been exported leading to a lack of jobs in manufacturing and the like, which has caused wages to flat-line.
The article also points out that Michael Spence is saying that high value jobs which are being exported overseas (for instance manufacturing) are being replaced with low value jobs (for instance a job in McDonalds) and acknowledges that the change in the structure of American employment from higher productivity to lower productivity jobs is the reason both for the flat-lining in US consumer income and for the rising inequality of income.
Sending jobs abroad raised the earnings of capital but has led to lost jobs in manufacturing being replaced by jobs which pay much less in the service sector such as supermarkets and fast food restaurants, thereby causing the rich to get much richer and everyone else to compete for the fewer and fewer remaining high value jobs.
It is interesting to see a Nobel Economist effectively stating (using the language of an economist) what everyone else is seeing with their own eyes.
Globalisation and the offshoring of jobs does have winners and losers in the USA. The super rich win. Everyone else loses...MORE...LINK
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2 months ago