Paul Samuelson, Economics icon, dissents on outsourcing/WTO

[Robert Oak]

This is fantastic...he is a world leading economics thinker...
it's like Einstein coming out against common agreed theory in physics...
SCORE!

http://www.technewsworld.com/story/wrldwd/outsourcing-globalization-36421.html

His dissent from the mainstream economic consensus about outsourcing and globalization will appear this month in a distinguished professional journal, cloaked in clever phrases and theoretical equations, but clearly aimed at the orthodoxy:

(more at link)

[necso]

1. Finally!

[aquart]

2. You mean outsourcing was supposed to be GOOD?

What idiot decided that?

Economists, pfui. The only people with more ridiculous ideas are philosophers.

They've been pushing outsourcing as GOOD? And they're not retarded or visibly brain damaged or anything? Do they drink?

3. Wow, Samuelson is still alive?

I had no idea.
:)

[volosong]

4. When I Interned in Ted Kennedy's Office

Samuelson's daughter was working there as well. She was nice to everyone. Never could understand her Father, however.

[rogerashton]

5. Don't underestimate the importance of this.

The economics profession has a "party line." (I am an economist.) Samuelson is one of the few people with a reputation big enough to legitimate contradiction to the party line. Stiglitz and Akerlof are close, too, and their dissents have been important, but PAS is the 800 pound gorilla -- in reputation terms, y'unnerstan.

6. That's true

I'm not an economist but I do remember Samuelson's text books in college 25 years ago were pretty much the standard setters.
To be used all across the country like they were is no small achievement and says something about how he is respected.

[porkrind]

10. Wow! It's THAT Samuelson???

I took economics at University with one of his textbooks. I read it cover-to-cover and enjoyed it.

7. FABULOUS -- I have thought this myself

Samuelson emphasized that his article was not meant as a justification for protectionist measures. Up to now, he said, the gains to America have outweighed the losses from trade, but that outcome is not necessarily guaranteed in the future.

***

Here's the danger--the whole Federal Reseve low interest rate thing is geared as if NET gains will be passed back to consumers. But that isn't true! While prices may be lower over the longest term, the growth in prices outpace wage gains, over the past few years. So the trend has changed!

The difference is bridged by borrowing money, as if it might somehow be made up for later. So the money borrowed by consumers for things like big houses ad cars may NEVER be returned to the economy as wages. That is NEVER EVER.

That's why the Federal Reserve HAS to crank up rates. They are realizing this too little, too late.

The country is about to go "under water" in debt, having exhausted every major pathway for increasing consumer debt without jobs coming.

[Robert Oak]

8. yes, I did overstate for positioning purposes

I also should state have not read the actual journal paper yet.

Very good point on consumer debt.

[MisterP]

11. trade in goods and services is wholly separate

from race-to-the-bottom expulsion of employment and opportunities thereto to places who won't benefit therefrom.

[Robert Oak]

9. link broken now here is a better one

they pulled the story

This one should be good

http://www.nytimes.com/2004/09/09/business/worldbusiness/09outsource.html