Earlier quoted context omitted.
I’m all for poorer countries getting a slice of the pie. Long term I’m not convinced it’s beneficial for the whole population of richer countries to continue, but rather only the elites of those countries. The amount income inequality has skyrocketed in recent decades sort of undermines the theoretical benefits economists love to tout. Nowadays manufacturing does not have to be uncompetitive. Advances in automation b…
It's especially beneficial for the poorest people in the developed nation. In the 1940 US, the poorest 20% spent almost their entire income on basic needs, such as food and basic clothing. Today, the poorest 20% can still afford smartphones and flat screen TVs, clothes and even vacations. Yes, globalization has massively increased market sizes, making the richest much richer. But it also made the poorest much richer.
Well 1940’s being a wartime era would be a bad time to compare to. It’d be best to compare to compare to just before globalization, probably 1960’s, 70’s, or even early 80’s.
Smartphones and flatscreen TVs aren’t necessities. Sure it’s great they’re cheap but they’d be cheap anyway. Only a fairly small fraction of manufacturing costs are due to labor based on leaked iPhone costs I’ve seen that were like 10’s of dollars.
At the same time housing costs have increased massively in the last 2 decades. Worker wages in most fields have not kept apace productivity gains. It’s worse in affluent areas where “free” money has skyrocketed housing prices. Perhaps it’s not related to globalization but it seems partly due to it.