Mainstream economists acknowledge that some people will gain and others will suffer in the short term, but they quickly add that "the gains of the American winners are big enough to more than compensate for the losers." That assumption is "only an innuendo," Samuelson writes. Trade, in other words, does not always work to all parties' advantage (it is a "popular polemical untruth.")
www.technewsworld.com/story/wrldwd/outsourcing-globalization-36421.htm
A Dissenter on Outsourcing States His Case
By ECT News Business Desk 09/07/04 8:44 AM PT
<snip>Sure, Samuelson writes, the mainstream economists acknowledge that some people will gain and others will suffer in the short term, but they quickly add that "the gains of the American winners are big enough to more than compensate for the losers." That assumption, so widely shared by economists, is "only an innuendo," Samuelson writes. "For it is dead wrong about necessary surplus of winnings over losings."<snip>
The essay is Samuelson's effort to contribute economic nuance to the policy debate over outsourcing and trade. The Journal of Economic Perspectives, a quarterly published by the American Economic Association, has a modest circulation of 21,000 but it is influential in the economics profession. Indeed, Bhagwati and two other economics professors, Arvind Panagariya of Columbia and T.N. Srinivasan of Yale, have already submitted an article to the journal, "The Muddles Over Outsourcing," that is partly a response to Samuelson.<snip>
<snip>
According to Samuelson, a low-wage country that is rapidly improving its technology , like India or China, has the potential to change the terms of trade with America in fields like call-center services or computer programming in ways that reduce U.S. per capita income. "Being able to purchase groceries 20 percent cheaper at Wal- Mart does not necessarily make up for the wage losses," he said in the interview.
The global spread of lower-cost computing and Internet communications, he noted, could accelerate the pressure on wages across large swaths of the service economy.
"If you don't believe that changes the average wages in America, then you believe in the tooth fairy," Samuelson said.<snip>
other links:
http://www.crmbuyer.com/perl/story/36459.htmlhttp://www.crmbuyer.com/perl/story/36421.htmlhttp://www.crmbuyer.com/perl/story/36156.htmlhttp://www.crmbuyer.com/perl/story/36198.htmlhttp://www.crmbuyer.com/perl/story/36385.htmlhttp://www.crmbuyer.com/perl/story/36383.htmlhttp://www.crmbuyer.com/perl/story/36379.htmlhttp://www.crmbuyer.com/perl/story/36353.htmlhttp://www.crmbuyer.com/perl/story/36303.htmlhttp://www.crmbuyer.com/perl/story/36280.htmlhttp://www.crmbuyer.com/perl/story/36270.htmlhttp://www.crmbuyer.com/perl/story/36265.htmlFrom 2001 to 2003, the top 50 outsourcing CEOs earned $2.2 billion while sending an estimated 200,000 jobs overseas.
http://www.ecommercetimes.com/perl/story/36248.htmlhttp://www.crmbuyer.com/perl/story/36142.htmlSurvey: Offshoring of IT Infrastructure Management Increasing
http://www.crmbuyer.com/perl/story/36195.htmlIndia Is Premier Destination for IT Outsourcing: Report
http://www.crmbuyer.com/perl/story/36164.htmlMichigan Considers Trying To Block Outsourcing
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