ARTICLE: "Globalization's Gains Come With a Price: While Poor Benefit, Inequality Feeds A Backlash Overseas," by Bob Davis, John Lyons and Andrew Batson, Wall Street Journal, 24 May 2007, p. A1.
Obviously a serious subject that I believe applies natural speed limits on globalization (caboose braking), but smartass that I am (throw your mouse in the trash, Neil!), I couldn't resist.
Globalization promised to lift the wages of low-skilled workers, and it has.
But, CANYOUBELIEVEIT! the wages of low-skilled workers haven't kept pace with the far faster rise of higher-skilled workers, which means, if you get more education and become smarter and talented in general, you get more money.
Further data cited in the "workaholics" story yesterday says people with the highest incomes tend to work the longest hours.
So to sum up: get smarter, work harder, earn more.
Sounds like a winning system right out of Darwin, destined to generate more wealth overall and drive human progress.
Or we could mandate everyone gets the same everything and see how that goes.
Sound cruel?
Tell me this statement doesn't strike you as odd:
While globalization was expected to help the less skilled ... in developing countries, there is overwhelming evidence that these are not generally better off, at least not relative to workers with higher skill or education levels (italics mine)
So write two American Ivy League economists.
Okay ... we should aim for a globalization that rewards less skills and less education?
The kicker of the piece:
Many developing nations seem to following in the footsteps of the U.S., where the income gap has grown sharply since the early 1970s.
Interesting, because that's when you get the first serious stirrings of the info age and globalization and where modern history really begins: the early 1970s.
The two big examples cited are the ones always cited:
1) Latin America, ruined by the Spanish and left with huge income gaps due to concentrated land ownership, still has huge gaps in income. I AM SHOCKED!
2) Mao's China had achieved the amazing distinction of making all its citizens amazingly poor and equally so. Now the gaps in income are huge compared to that nirvana.
Meanwhile, the population in China living on less than a buck a day drops from over 600 million to about 100 million, or from 60 percent to about 10 percent.
Want to count up all the lives elevated and extended and improved?
Or just bitch about the gap?
Of course, the gap isn't an economic issue, but a political one. So yeah, it matters only so much as politics matter. But get big enough, and your system better get more open or a whole lot more closed.
Guess which route gets you more money?
The big driver in all of this division: the gap in skills in handling new technology.
So what should technology do? Get easier to use, I guess.
What should governments do? Improve education and expand its access.
What should biz do? Work more upstream in educational systems to improve appropriate training.
What should Latin America do? Ask Hernando De Soto.