Globalization, Worker Insecurity, and Policy Approaches
"Today’s global economy, or what many call globalization, has a growing impact
on the economic futures of American companies, workers, and families. Increasing
integration with the world economy makes the U.S. and other economies more
productive. For most Americans, this has translated into absolute increases in living
standards and real disposable incomes. However, while the U.S. economy as a whole
benefits from globalization, it is not always a win-win situation for all Americans.
Rising trade with low-wage developing countries not only increases concerns of job
loss, but it also leads U.S. workers to fear that employers will lower their wages and benefits in order to compete. Globalization facilitated by the information technology revolution expands international trade in a wider range of services, but also subjects an increasing number of U.S. white collar jobs to international competition. Also, globalization may benefit some groups more than others, leading some to wonder whether the global economy is structured to help the few or the many."