Monday, February 6, 2012


This relates back to the iPhone story I posted last week; Stiglitz warned us about the dangers of outsourcing years before the current US unemployment crisis:
But even if the eventual numbers are limited, there can be dramatic effects on workers and the distribution of income. Growth will be enhanced, but workers may be worse off - and not just those who lose their jobs. This has, indeed, already happened in some developed countries: in the ten years that have passed since the signing of the North American Free Trade Agreement, average real wages in the US have actually declined.
Economics, especially economic policy, never ceases to amaze me.  The people that were right before the financial crisis continue to be right.  The only problem is, they're not the ones making the policy decisions.  For every Larry Summers or Tim Geithner, there is a Paul Krugman or a Joseph Stiglitz sitting on the sidelines getting these things right.  Why aren't they the ones advising the president?

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