cost arbitrage: software programming, medical diagnostics, engineering, design, law, accounting, finance, business consulting. Again it is the most easily standardised jobs that are tradeable. • Basic (menial) service jobs like cleaner not tradeable because they need to be locally delivered. • Comment – the article does not mention automation of jobs technology means that manufacturing, is increasingly automated. Will taxi and UBER driver jobs disappear with self driving cars
Globalisation Issues Potential Responses Low skilled/ Displaced workers e.g. Blackburn- skills upgrading e.g. Germany- sophisticated system of apprenticeships Programs to fund training/support displaced workers • EU: Globalisation Adjustment Fund • USA: Trade Adjustment Holes in the social safety net, and the option to redistribute the benefits of globalisaiton • In EU health cover is universal and social welfare more generous. • In US Health cover is tied to employment, and social welfare is less generous.. • This creates higher political opposition to offshoring of jobs because both income AND health cover goes when job is lost. • Tax redistribution/scrapping tax breaks and loopholes 2015 IMF report • Fiscal redistribution though better education opportunity/skills development for lower income people • Decouple health care from employment increases productivity and decreases mortality
7.What are your own thoughts about inequality? Why is it an important social concern? Is it a necessary evil in some respects? Why and how so?
Essay: Assessment 1