The Economists’ Dirty Little Secret
My colleagues in economics (and many others, including quite a few liberal ones) tend to scoff at the majority of the public that is troubled by globalization. Never mind the false medications, poisoned toys, and pirated goods, you just don’t understand—these economists say—free trade is good for you, me, and the man behind the tree. Economists are quick to argue that free trade reduces the costs to consumers and thus ensures an ever higher standard of living. Citizens of nations like the United States that are losing jobs to India and China (and scores of other nations) are told to not fret, that these are menial jobs, that off-shoring allows more Americans to specialize in high tech, well-paying, “clean” work. Often disregarded is that neither God nor anyone else set aside these choice jobs for Americans, and that Indians, Chinese, Finns, and Israelis—among others—can do these jobs too, and often for a fraction of what Americans charge. (One economist, Alan Blinder, suggests that hence Americans should specialize in those jobs that are hard to ship overseas—cutting hair, policing the streets, and flipping hamburgers. How many such service jobs there are, and how well they pay, remains to be determined).
