On Wed, Dec 24, 2008 at 6:38 PM, Jim Devine
<jdevine03@xxxxxxxxx> wrote:
FWIW, it's hard to separate these causes of job loss. Rising labor
productivity in the US compensates businesses for China's wage
advantage. (Ideal, from the business point of view, would be the
highest possible labor productivity combined with Chinese wages (or
cheaper).)
If there was no wage competition from China (and other low-wage
areas), US manufacturing would try to raise labor productivity anyway.
Eugene Coyle wrote:
> In a book review in today's (12/24/08) Wall St. Journal we find this remark:
>
> "Examining data on changes in the US work force, the authors show that job
> losses due to higher productivity -- often the result of improving
> technology -- greatly outnumber those lost to globalization. The authors
> cite Commerce Department figures estimating that 65% of job losses in
> manufacturing between 2000 and 2006 were due to productivity increases; just
> 35% of job losses owed to overseas outsourcing."
>
> I read this skeptically since the thrust of the authors is evident in the
> title of the book: GLOBALIZATION: THE IRRATIONAL FEAR THAT SOMEONE IN
> CHINA WILL TAKE YOUR JOB.
>
> An interesting claim, nevertheless.
--
Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
way and let people talk.) -- Karl, paraphrasing Dante.