European Tribune

Hit and Run Globalisation Diary

by Metatone
Wed Sep 26th, 2007 at 02:26:37 PM EST

Guardian Online: Comment is free: Jobs go, health follows
About a third of jobs in developed economies like Britain may be lost to globalisation. That is the conclusion not of opponents of globalisation but of an increasing number of economists who are enthusiasts for globalisation.

Indeed, said Laura Tyson, business professor from California, former dean of the London Business School, and adviser to one of the Democratic presidential candidates (almost certainly Hillary), at a lecture in the Treasury last night, it remains true that globalisation cannot be stopped and protectionism will not work. But this is little comfort to the losers. Her main message was that job losses are inevitable and governments need to develop policies now to help people and the economy adapt. Sir Gus O'Donnell, the cabinet secretary, was sat in the front row and praised Tyson for her terrifyingly smart lecture.

One the one hand, it's refreshing to hear someone in the "economics advisor mainstream" admit what looks pretty obvious. Jobs are being exported and the invisible hand won't replace them.

On the other hand, it's rather worrying. Sure, the market system may fix itself eventually, but examples of regional unemployment (North of England, East Germany) suggest that it takes on the order of 20-30 years for the market to begin to return employment to depressed areas. Add in the complications of international job transfers and we could easily be looking at 50 years or more of increased unemployment here in developed economies.


Some interesting rambling on winners and losers and the effects on health make up the rest of the column, which is by a doctor...

The main losers, interestingly, will not be the less skilled workers - because so many of their jobs depend on face to face contact. You can't export the jobs of hairdressers, restaurant staff, and shoe salespeople. Nor importantly are these people's jobs threatened by immigration. Tyson said that the numbers were very clear that immigration didn't reduce wages. Further, Britain has been smart in that its immigrants are generally better qualified than its home workforce. (This, of course, is not good news for the countries the immigrants leave.) So immigration may be politically sensitive but its effects on jobs is tiny compared with bigger forces.

Nor will the losers be those with tertiary education. Indeed, globalisation may well push up the wages of these workers. The main losers will be the middle third, those whose jobs can be "modularised" and either exported to emerging economies or replaced by technology. If you spend most of your day working on a computer rather than serving coffee then your job is at risk.

Most of the audience were men in dark suits, and everybody who asked a question was an economist. Us "health people" were thin on the ground, and my mind turned inevitably to a book I published in the 1980s on unemployment and health (still perhaps available from disreputable, back street book sellers). At that time Britain had three million unemployed, and the evidence showed clearly that both unemployment and the threat of unemployment had a profound effect on health. It's not surprising because employment is the way that most people define themselves. Our first question of others is usually "What do you do?" If a third of us are going to lose our jobs there are likely to be major effects on health.
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Tyson said that the numbers were very clear that immigration didn't reduce wages.

I'd like to see some sources for that.

Further, Britain has been smart in that its immigrants are generally better qualified than its home workforce.

But immigrants still typically get the crap-end jobs. They may have PhDs, but mostly they're not being allowed to use them.

(This, of course, is not good news for the countries the immigrants leave.)

Nor for the countries they move to.

So immigration may be politically sensitive but its effects on jobs is tiny compared with bigger forces.

It sets the narrative - work harder for less money, because if you don't, someone else will.

Meanwhile globalisation has maybe 10-15 years before it hits the ecological and resource peak buffers.

If economists want to see what 'inevitable' looks like, tickets to that show are already on sale.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Wed Sep 26th, 2007 at 03:50:41 PM EST
Hey Metatone! Hmm, intense article. But...What YOU know, and who YOU are, aren't exportable! Intelligence is an important local resource, yes?

Half the population is under the age of 18. Tanzania's future is NOW...join the 50% campaign!
by whataboutbob on Fri Sep 28th, 2007 at 12:22:02 PM EST
Globalization is one of those long term projects of the "Illuminati", and I don't mean Adam's group but I use the word to mean those global corporations who have long had control of governments worldwide.

"Free" trade as sold to you by the globalists means exploitation and slave labor for the profits of a very few elite assholes.  Very simple isn't it.  Naturally the complete decay of all other things like health care are going to suffer.

by Lasthorseman (Lasthorseman@comcast.net) on Sat Oct 6th, 2007 at 10:17:27 PM EST


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