Trey has posted something interesting on Freeman's logic and the U.S. Auto industry, saying that employees of GM & Ford will need to consider accepting lower wages or will wind up having their jobs outsourced. He asks whether current high incomes are reasonable or sustainable.
It strikes me that part of the reason we have heard so much more about "outsourcing" of jobs to Asia in recent years is that this phenomenon has begun to affect white collar workers more. It used to be that blue collar workers, such as people working on assembly lines, were the ones threatened by globalization and having their jobs getting "shipped overseas". All of a sudden, as Queen Deviant notes, the low cost of shipping information (with broadband cables around the world, e.g.) means that outsourcing is now affecting people working in (God forbid!?) law firms, software companies, and maybe even investment banking firms.
Let's consider Trey's thoughts in an international perspective. Many people in India and China might say something like the following: not only should American auto workers not be paid so much, but there is also no reason for American professionals to get paid so much. What will happen when Wall Street finds they can hire very proficient investment analysts in Calcutta for $40,000 a year instead of three times that for someone living in Manhattan?
So, to extend the logic, here is the question I would ask: if we look at things globally, are American white collar workers overpaid too? Will our professionals find themselves trapped by the same logic Trey has outlined for GM and Ford workers? If not, why not?
Finally, as probable future professionals yourselves, do you feel the U.S. should protect America's highly educated, highly skilled workers? Would you feel differently if you were born in Calcutta? (Singer would suggest you shouldn't...)
-- jtd
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