What Happens To The Losers From Globalization?

This article reluctantly informs us that globalization has winners and losers. It also tells us why many American's are concerned for their future. Median household income in the US is substantially lower than it was eleven years ago. Much of that loss has occurred due to the loss of jobs and the erosion of wages in manufacturing.

While the loss of manufacturing jobs and the decline in middle class wages is well described. The solution that is offered seems less than adequate. Its hard to see how government tax cuts to encourage entrepreneurship is the answer. Most of the successful companies that he used as examples do not employ large numbers of workers. His focus on education as a source of jobs is also a good idea. Education is a public good that ought to be supported. Its hard to see how that can happen however, in our current situation. The price of higher education is rising fast while wages in the middle class are falling. This coupled with the declining tax support for higher education is making higher education less available to the middle class. He did not make a case for the needed tax support as he did for the use of tax cuts to encourage employment. Middle class families have taken on huge debt in order to gain access to higher education. Debt from college loans now exceeds credit card debt in the US. This may not be sustainable as large numbers of recent college graduates have difficulty finding jobs and end up taking jobs that do not require a college degree or provide wages that enable them to form households as they pay down their debt.