International Trade and Wages

[Steve.Keen@xxxxxxxxxxx #4042) id <01H7Y7RMW7C08WY9XU@xxxxxxxxxxxxxxxxxxxxxx>; Fri,]

From:	IN%"newman@xxxxxxxxxxxxxxxxxxx"  "Nathan Newman" 21-JAN-1994 15:58:36.64
To:	IN%"Steve.Keen@xxxxxxxxxxx"
Subj:	RE: Does International Trade Lower Wages in the 1st World?

Return-path: <newman@xxxxxxxxxxxxxxxxxxx>
Date: Thu, 20 Jan 1994 20:56:39 -0800 (PST)
From: Nathan Newman <newman@xxxxxxxxxxxxxxxxxxx>
Subject: RE: Does International Trade Lower Wages in the 1st World?
In-reply-to: <01H7Y44IRPEQ8WYBLP@xxxxxxxxxxxxxxxxxxxxxx>
To: Steve.Keen@xxxxxxxxxxx


Did you mean to send this to the whole list?  I didn't see a PEN-L
address.  You might want to repost.

Interesting though.

	 **************************************************
         *    Nathan Newman:  newman@xxxxxxxxxxxxxxxxxxx  *
         *                 UC-Berkeley			  *

On Fri, 21 Jan 1994 Steve.Keen@xxxxxxxxxxx wrote:

> Re request for any research on the impact of the relacation of
> production. A LONG time ago I did a paper applying Robinson's "golden
> age" analysis to the question of the relocation of production. It's
> not empirical, and far from conclusive, but the results implied that
> multinationals re are likely to rey try to pocket the difference
> (as Nathan suggests) and also that there are likely to be depressing
> macro effects that somewhat counter the micro effects (lower costs)
> that motivated the firms in the first instance.
> The rationale for the latter is fairly obvious: workers' wages in the
> First World are part of effective demand; if reolcation actually
> erduces the wage bill (and redistributes part of the fall to higher
> profits) there will be a fall in effective demand (since the rich
> consume proportionately less than the pooor). There will thus be a
> "classic" Keynesian demand fall going along with the price fall,
> which while it might not completely obscure the latter, could go
> a long way towards making it less significant.
> Cheers,
> Steve Keen
>