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
mct credit union amsterdam ny 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
americo federal credit union erie pa and a high school education and
mct credit union amsterdam ny 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
letourneau federal credit union as well immigration. Moreover, these studies
point out
mct credit union amsterdam ny and that the impact of globalization on income inequality is surprisingly
small, since the loss of jobs resulting from
nibc credit management and offshoring and
mct credit union amsterdam ny as well imports is offset
by increasing purchasing power, thanks to the lower prices of goods. This
is no different from
members first credit union quincy il and the benefits to the poor from
mct credit union amsterdam ny and greater local competition
(see the essay on page 71, “Attempts to Limit Competition Are Little More
than Stealing from
insta credit automart collinsville il and the Public”).
In one very important sense, globalization and
mct credit union amsterdam ny 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
summerside credit union and in other parts of the emerging world.
A more detailed discussion of poverty, income inequality, and
mct credit union amsterdam ny as well policies to
alleviate both can be found in the essays in Part VII,“Poverty, Inequality, and
Job Insecurity: Help the Vulnerable and
oregon first community credit union pendleton as well Downtrodden without Hurting the
Rest.”