Tuesday, December 12, 2006
2007 agenda - socialise globalisation?
The 'developed' world will suffer a decline in wages for about 40 to 50 years.
"Professor Freeman [of Harvard] estimates that the entry of China, India and the former Soviet bloc into the world economy resulted, by 2000, in a doubling of the number of workers to nearly 3bn. . . Eventually the labour surpluses in the emerging countries will be used up and competition for workers will drive wages up. The question that faces the rich countries is "when?". Professor Freeman estimates 40 to 50 years. In between there will be downward pressure on many kinds of wage earner in the west." reported the FT on 20 October, 2006 after seeing the academic paper.
The FT's Samuel Brittan suggested that debates are needed on what lies ahead. For example, governments might be persuaded to favour labour more than capital, and labour standards in the global economy could be raised.
Of course, since October 2006 popular dissatisfaction with the ruling party in the United States has caused much political control to move to the Democrats. Policy changes in the US may be expected.
"Professor Freeman [of Harvard] estimates that the entry of China, India and the former Soviet bloc into the world economy resulted, by 2000, in a doubling of the number of workers to nearly 3bn. . . Eventually the labour surpluses in the emerging countries will be used up and competition for workers will drive wages up. The question that faces the rich countries is "when?". Professor Freeman estimates 40 to 50 years. In between there will be downward pressure on many kinds of wage earner in the west." reported the FT on 20 October, 2006 after seeing the academic paper.
The FT's Samuel Brittan suggested that debates are needed on what lies ahead. For example, governments might be persuaded to favour labour more than capital, and labour standards in the global economy could be raised.
Of course, since October 2006 popular dissatisfaction with the ruling party in the United States has caused much political control to move to the Democrats. Policy changes in the US may be expected.
# posted by IJ @ 2:35 PM 
