Can these jobs created by capital inflows be fully offset by growing trade deficits? It`s possible, but unlikely. Of course, other macroeconomic influences can push an economy into full employment, even given trade deficits. In the late 1990s, for example, employment in manufacturing was lost in trade, while construction jobs (at least partially driven by foreign capital flows) were booming. By contrast, in the early 2000s, trade allowed manufacturing to replace it faster than any other industry (including interest-sensitive industries). The resulting practices, such as the focus on quarterly earnings and the current share price, as well as massive share buybacks — about $3.4 trillion over the past decade — have shown that the company is doing well. It was (and is) in fact, illegal manipulation of the share price. But everyone has climbed on board: business execs, boards of directors, Wall Street, brokers, regulators, politicians and investors. While global integration is generally a «win-win» between countries, it can still result in heavy losses for tens of millions of workers in the U.S. economy.
It is essential that this loss of wages is not limited to workers in trade-prone sectors, but is felt by all workers similar to those distributed by imports in terms of education, skills and experience. Many of these workers probably do not even know that they are affected by globalization, but they are. Landscapers are certainly not supplanted by imports, but their wages suffer from employment competition with import-forced garment workers. Workers in many low-income countries around the world work in conditions that would be illegal for a worker in the United States. Workers in countries such as China, Thailand, Brazil, South Africa and Poland often receive less wages than the MINIMUM SALAIRE in the United States. In the United States, for example, the minimum wage is $7.25 per hour; A typical salary in many low-income countries could be $7.25 a day, or often much less. In addition, working conditions in income countries can be extremely unpleasant or even precarious. In the worst case scenario, production may involve the work of young children, or even workers, who are almost treated as slaves.
These concerns about foreign labour standards do not concern most of U.S. trade, which is intra-industrial and is carried out with other high-income countries, which have labour standards similar to those of the United States, but is nevertheless morally and economically important. «Jobs in export-related sectors tend to pay more than other jobs, about 10-18 per cent more,» she says. So our exports support not only jobs, but also better-paying jobs. When thinking about labour standards in other countries, it is important to think about some of the distinctions between what is really unacceptable and what is painful. Most people, including economists, have little difficulty imagining that the production of 6-year-olds locked up in factories or by slavery is morally unacceptable.