| Avinash_Tyagi said: Not everyone wins, because those jobs that migrate to China in favor of the cheap labor are losses to workers in other countries, like the US, like I said there are winners and there are losers, as a result there is a role for government to play, because having such a situation can result in increased disparity in wealth. Not everyone wins, and the quickest way to end up with a backlash against globalization is to have a wave of people in your country turn against it because they feel their livelihood is at stake, the theory of collective action, the government acting as a sheild for these people will allow globalization to go forward unhindered, if people feel they are safe even if they lose their job, they have less incentive to protest.
http://money.cnn.com/2008/01/18/news/economy/worldgoaway.fortune/index.htm
You want to avoid results like this then the governemnt has to insure people against the negative effects of the market |
I have to disagree somewhat, because the types of jobs that chinese workers are doing are generally not the kind that American laborers performed, but which are most often done by machines. Just look at the past couple of years: Unemployment has been near all-time lows (though it probably won't stay depending on how deep the imminent recession goes), and our trade deficit has never been larger meaning we are buying lots of stuff from overseas.
I tend to vote pretty libertarian so I like the government to stay out whenever possible.
