Re:Economists are now admitting that they were wrong about g...
by pas on Friday October 25, 2019 @09:16PM
(#21360907)
At the same time free trade happened because specialization (comparative advantages) help everyone.
The decrease in US wages is offset by the decrease in prices (due to the increased efficiency of the whole global and local economy).
The problem is that individual workers are not strongly incentivized to relocate, retrain, rethink their life.
Just look at Appalachia. There are still villages/towns where people sit around on welfare and do basically nothing plus moan about how that particular mine has run out. This has been going on forever. Humans are not that strategic masterminds when it comes to planning for the future. See also how paradigm shifts coincide with a new group rising in power because the old guard is too wedded to their ideology.
The decrease in US wages is offset by the decrease in prices (due to the increased efficiency of the whole global and local economy).
The problem is that individual workers are not strongly incentivized to relocate, retrain, rethink their life.
Just look at Appalachia. There are still villages/towns where people sit around on welfare and do basically nothing plus moan about how that particular mine has run out. This has been going on forever. Humans are not that strategic masterminds when it comes to planning for the future. See also how paradigm shifts coincide with a new group rising in power because the old guard is too wedded to their ideology.