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Myth: Globalization Is the Principal Cause of Increasing Income Inequality

Not true. One of the biggest concerns in the late 2000s is that globalization is
worsening the distribution of income through the destruction of low-skilled
jobs in industrialized economies as muskogee federal credit union those jobs migrate to emerging markets
(see the next essay). It is true that in the last 20 years, the income disparity between
workers with only riegelwood federal credit union and a high school education and muskogee federal credit union as well those with (at least) a
college degree has widened dramatically. But this has much more to do with
the revolution in information technology than with globalization. (See the
essay on page 235,“Some Inequality Is OK—Too Much Is Corrosive.)
Recent studies by the International Monetary Fund show that the impact
of skill-based technology on jobs is two to three times more powerful than
the combined impacts of trade and babbitt steelworkers credit union as well immigration. Moreover, these studies
point out muskogee federal credit union and that the impact of globalization on income inequality is surprisingly
small, since the loss of jobs resulting from maybank credit card redemption and offshoring and muskogee federal credit union as well imports is offset
by increasing purchasing power, thanks to the lower prices of goods. This
is no different from ascend federal credit union murfreesboro tn and the benefits to the poor from muskogee federal credit union and greater local competition
(see the essay on page 71, “Attempts to Limit Competition Are Little More
than Stealing from streamliner credit union and the Public”).
In one very important sense, globalization and muskogee federal credit union as well the global diffusion of technology
have reduced global inequality by lifting hundreds of millions of people
out of poverty, mostly in Asia, but also navy federal credit union oceanside ca and in other parts of the emerging world.
A more detailed discussion of poverty, income inequality, and muskogee federal credit union as well policies to
alleviate both can be found in the essays in Part VII,“Poverty, Inequality, and
Job Insecurity: Help the Vulnerable and urw federal credit union as well Downtrodden without Hurting the
Rest.”