Globalization, Higher Profits And Lower Hourly Wages

Corporate profits as a share of GDP reached their highest level in 2010 since 1929.  Wages as a share of GDP have been falling steadily.  This article attributes this dynamic to globalization.  Workers in rich countries compete with workers in poor countries.  They have little negotiating power when employers demand lower wages with a threat to close plants down and relocate production.  Prior to globalization, private industry redistributed income downward to labor.  The process has been reversed by globalization.  This process is not likely to change.  Most of the proposals for dealing with the problem do not address the core problem.  Corporations have the upper hand in labor negotiations.