I just read an EPI paper by Jeff Faux, founder of the Economic Policy Institute, called GLOBALIZATION THAT WORKS FOR WORKING AMERICANS. This paper reads to me like a manifesto. I was awed by this particular paper so I am hoping by writing a diary more people read this excellent summary on the current state of affairs with US trade policy.
It appears EPI is launching a new policy site, Agenda for Shared Prosperity and Senater Jim Webb was their first keynote speaker.
Some quotes from the paper on the flip....
In America, as elsewhere, the benefits of the current form of globalization have been concentrated among those at the top of the income and wealth ladder, while the costs have been paid by working families at the middle and the bottom. Real wages and benefits for the majority of workers are stagnant, jobs have been destroyed, and family and community life has been stressed and, at times, broken apart.
and this point on why the "free traitors" ignore some obvious economic warning signs:
A central problem with claims of huge gains from expanded trade is that they come not from actual experience but from simulations of what might happen under extremely unrealistic conditions. Among other things, they assume a state of permanent full employment. Thus, by definition, trade can never cost any workers their jobs. Moreover, these models simulate only trade, not globalization. They do not analyze the costs to America of investment flowing to other nations, the undercutting of bargaining power, nor the off-shoring of American technology.
And Policy recommendations:
- A complete, comprehensive new trade strategy
- Responsible Trade Policies
- Competitiveness Policy
- Restoring the Social Contract
- New Global Rules
He has more details, such as pause in passing any further trade agreements, do not approve fast track, invest in R&D, inclusion for education, strengthening the bargaining power of unions, consider limiting insourcing, remove tax incentives to move jobs, capital offshore and so on.
EPI is clearly presenting complex and detailed policy recommendations and analysis, so if you're reading this diary, well, you really need to read the paper itself.
Assuming you have, I'd like to know what you would like to see in terms of policy to improve global economic conditions for the United States and working America.
I believe this is a Race to the Bottom and beyond worker rights and environmental standards, I often wonder if we plain need a wage tariff (pdf).