This is another hot-button issue.
Federal Reserve Chairman Ben Bernanke cautioned lawmakers on Friday to avoid the temptation to impose protectionist trade policies as the United States grapples with fierce competition from a powerful wave of globalization.
There are some serious global competitors - both corporate and national. What's a country to do?
China, South America, India, Latin America, the list goes on.
Globalization has shrunk the world and made countries increasingly connected through economic ties. The opportunities for companies to sell their goods to more and more countries can generate wealth and boost living standards. That has benefited some workers, but has hurt those left behind in the changing worldwide economic landscape.
There are plenty of sad stories to be found. Just watch the nightly news.The reaction concerns Bernanke.
...U.S. lawmakers — as they have through the centuries — may be tempted to enact protectionist measures to try to slow globalization.
Bernanke said that would be unwise.
“The natural reaction of those so affected is to resist change, for example, by seeking the passage of protectionist measures,” he said.
True. But where do you draw the line? And who's in charge of the pen?
“The challenge for policy-makers is to ensure that the benefits of global economic integration are sufficiently widely shared — for example, by helping displaced workers get the necessary training to take advantage of new opportunities,” he said.
I'm not so sure I want the government in charge of educating displaced workers. Their track record over the past 30 years in education is far from encouraging.
President Bush wants to sharpen America’s competitive edge by bolstering math and science education, and encouraging research and development.
Education and innovation. Sounds like a job for the American entrepreneur.
“The emergence of China, India and the former communist-bloc countries implies that the greater part of the earth’s population is now engaged, at least potentially, in the global economy,” Bernanke said. “There are no historical antecedents for this development. “
So, there's no real model to look back and learn from. Too bad. I just hope that lawmakers and the people that put them in that position don't rush something together because "we have to do something". "Something is better than nothing" almost guarantees a disaster.
At the very least, as an employee don't become complacent. Doing so could make you another one of those "sad stories".
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