A Myth About Globalization
Over at Digby's place, David Atkins has argued against any cuts to Medicare or Medicaid as part of a laughably unnecessary "grand bargain" meant to avoid the largely mythological "fiscal cliff," by referring to increasingly depressed wages of working people in the U.S. But in a recent post , he repeated a myth about how globalization has factored into the downward pressure on the livelihood of the vast majority of Americans: Now, it's certainly true that we live in a brave new world that structurally advantages the wealthy: labor is global and expendable, jobs are increasingly mechanized, the world is flattened, vertical integration and economies of scale are commonplace. But as Hacker and Pierson persuasively argue , this is also a product of intentional public policy, including (as I have frequently argued) an obsession with inflating assets over wages . Atkins correctly points out that a major part of the story that explains the stagnation of m...