Labor & Economic News Blog

Thursday, January 18, 2007

Globalized economy a double-edged sword for Americans

Globalized economy a double-edged sword for Americans
The recent increase of foreign investment and trade has proved a mixed blessing for the United States, adding dramatically to growth and wealth but also acting as a wedge to widen the gap between the richest Americans and the rest of us. That is because a globalized economy produces opposite effects at top and bottom of the economic scale, said Robert Reich, former labor secretary and now professor of public policy at the University of California, Berkeley. "Someone who's well-educated in the U.S. now has a global market for his or her services — and is a scarce and valued asset in that global market," he said. "But someone who lacks skills is now competing with millions of others around the world who are similarly situated and in abundant supply."

 



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