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View Diary: South Korea-U.S. trade pact no slam dunk (114 comments)

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  •  But isn't US per capita income higher? (0+ / 0-)

    ($39,000 in 2009)

    And wouldn't this make labor costs in the US higher than in South Korea? If not, how do you explain the shift of so much manufacturing out of the US?

    On a personal note, I grew up in a thriving American town of 10,000 people concentrated on the manufacturing of bicycles, clothing,dairy equipment, and paper. The town is only 5000 now and the only industry left is the paper mill, but even that form of bulk manufacture is facing pressure from overseas competitors. Apparently it is becoming cheaper to ship out wood pulp and import back the finished paper.

    "Para dialogar, preguntad primero; después... escuchad." - Antonio Machado

    by Valatius on Mon Dec 06, 2010 at 10:09:16 AM PST

    [ Parent ]

    •  The problem with taking U.S. per capita income (0+ / 0-)

      at face value is that due to income quality being so much higher in the U.S. than in other places, I big part of that average comes from the top 2%.

      Once you factor out the top 2%, the per capita gdp in comparison to many industrialized nations suddenly changes dramatically.

      I do understand your general point about outsourcing and job losses, but a trade agreement with a highly industrialized nation like South Korea is just the wrong place to drop blame for it, imo.

      Furthermore, it's not all due to outsourcing... lots is also due to increased mechanization and computerization.

      "The perfect is the enemy of the good." - Voltaire

      by Lawrence on Mon Dec 06, 2010 at 10:28:51 AM PST

      [ Parent ]

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