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Pastimes : Let's Talk About Our Feelings!!! -- Ignore unavailable to you. Want to Upgrade?

To: Oeconomicus who wrote (93374)	1/12/2005 11:31:01 AM
From: epicure	Read Replies (4) \| Respond to of 108807

Oh yes more economic lessons Please! when the port of Long Beach is receiving 33 bln (approx) in imports- mostly finished goods and the Us is exporting about 3 bln- mostly raw material How do we keep jobs in this country for low skilled workers? I know I know All those new "service" jobs but when all the burger chef positions are filled, then what? "The relevant issue is the standard of living of the American worker, not the nominal wage rate. Both trade and higher productivity work to improve standards of living. What's more, neither destroys jobs in the long run, but simply reallocates labor to its most productive use. " this sounds good- but when you have millions losing their jobs, and no equivalent jobs for those people to step in to, one has to ask you- just how long a run are you looking for, and how long do you expect people to wait for the "reallocation" and (gasp) what if you are wrong, and things don't reallocate quite the way you thought they would? "The difference in absolute wage rates between countries is irrelevant. What matters is relative opportunity costs - i.e. comparative advantage - which makes it possible for both nations to benefit from trade even when one has an absolute advantage in all goods because of, for example, very low nominal wage rates." Seems to me the Us is "benefitting" by an ever increasing trade deficict. Is this another one of those pesky little details that will be worked out...in the long run? I've read a few economists who are more than a little worried about the points you are finessing.