Krugman's Harshest Post Yet

[joshcryer]

59. The reference may be broken since that's a handout, here's the proper cite:

Globalization has reduced the wages of “unskilled” workers for at least three reasons. First, the steady growth in U.S. trade deficits over the past two decades has eliminated millions of manufacturing jobs and job opportunities in this country. Most displaced workers find jobs in other sectors where wages are much lower, which in turn leads to lower average wages for all U.S. workers. Recent surveys have shown that, even when displaced workers are able to find new jobs in the U.S., they face a reduction in wages, with earnings declining by an average of over 13% (Mishel et al. 2001, 24). These displaced workers’ new jobs are likely to be in the service industry, the source of 99% of net new jobs created in the United States since 1989, and a sector in which average compensation is only 77% of the manufacturing sector’s average (Mishel et al. 2001, 169). This competition also extends to export sectors, where pressures to cut product prices are often intense.

From here: http://www.ratical.org/co-globalize/NAFTA@7/nafta-at-7.pdf

This is also of note: http://www.epi.org/publication/briefingpapers_bp147/

Hardly fucking "modest." Even if I have a shit grasp of the English language I know what "modest" means.