Posted on 11/10/2007 10:03:26 AM PST by 1rudeboy
Daniel Griswold directs the Cato Institute's Center for Trade Policy Studies and authored the new study, "Trading Up: How Expanding Trade Has Delivered Better Jobs and Higher Living Standards for American Workers," available at freetrade.org.
President Bush urged Congress yesterday to pass four pending trade agreements, telling a White House audience that open markets boost economic growth, raise standards of living by creating higher-paying jobs and deliver more choice and better prices for consumers. Despite claims to the contrary by populist opponents of trade expansion, the president has the facts and decades of experience on his side.
Critics of trade counter that real wages have stagnated while the middle class has been squeezed by a loss of jobs to low-wage competitors such as China and Mexico. Democrats in Congress point to those anxieties to justify their opposition to any meaningful trade-expanding legislation — including pending free trade accords with South Korea and Colombia and renewal of presidential trade-promotion authority.
Like so many assumptions about trade, the belief that more global competition has somehow lowered the living standards of the average American worker and family is just a myth.
The critics have it all wrong: The middle class isn't disappearing — it's moving up.
The Census reports that the share of U.S. households earning $35,000 to $75,000 a year (in '06 dollars) — roughly, the middle class — has indeed shrunk slightly over the last decade, from 34 percent to 33 percent. But so, too, has the share earning less than $35,000 — from 40 percent to 37 percent.
It's the share of households earning more than $75,000 that's jumped — from 26 percent to 30 percent.
Trade has helped America transform itself into a middle-class service economy. Yes, the country's lost a net 3.3 million manufacturing jobs . . .
(Excerpt) Read more at freetrade.org ...
From now on I’ll read something that’s not there into everything you post. There now, settle down.
Well, we can all be assured you’ll have a job...
(spamming FR with so-called “free trade” propaganda)
:)
/sort of
It’s my pleasure. Someone needs to keep the Dem sleepers and third party malcontents on their toes.
The U.S. Bureau of Labor Statistics reports that the average real hourly compensation earned by Americans has actually grown by 22 percent during the past decade — even as trade and other measures of globalization have grown rapidly.
The falling dollar correlates more toward the uncertainty
of our congressional leadership.
Yes, a sharply devalued dollar could bolster inflation. However our economy
grew at 3.9% annually last quarter so I don’t believe there’s too much to worry about.
I’m more worried about the “green” stranglehold over our congress. No oil, no prosperity.
Oh, you want me to read some more of statistics that you keep changing the meaning of? Ha.
Of course not. You failed to consider them the first time. Why should the second time be any different?
Tax the greedy elite, for the poor!
The Census reports that the share of U.S. households earning $35,000 to $75,000 a year (in '06 dollars) — roughly, the middle class — has indeed shrunk slightly over the last decade, from 34 percent to 33 percent. But so, too, has the share earning less than $35,000 — from 40 percent to 37 percent.
Darn it, there are fewer poor. I blame free trade.
You really need to take a closer look at my comment #6, and your reaction to it in your comment #7. The fact of the matter is, I am discussing data and you are demagoguing . . . that’s why you made the bee-line for the tall grass by telling me to “talk to real people.” As if I don’t. Har.
More accurately, it’s “proof” that incomes are not rising for anyone.
The U.S. Bureau of Labor Statistics reports that the average real hourly compensation earned by Americans has actually grown by 22 percent during the past decade — even as trade and other measures of globalization have grown rapidly.
I wish these guys would cite their sources -- maybe I wouldn't have to ask. BLS is pretty big.
Employment, Hours, and Earnings from the Current Employment Statistics survey (National) Yes, wages are up including adjusting for inflation no doubt.
Total Private Average Hourly Earnings of Production Workers - Seasonally Adjusted, January
1997 12.29
2007 17.10
It appears that production workers include these sectors Goods-producing; Natural Resources and Mining; Construction; Manufacturing; Private Service-providing; Trade, Transportation and Utilities; Wholesale Trade; Retail Trade; Transportation and Warehousing; Information; Financial Activities; Professional and Business Services; Education and Health Services; Leisure and Hospitality; and Other Services.
For example,
Private Service-providing Average Hourly Earnings of Production Workers - Seasonally Adjusted, January
1997 11.84
2007 16.77
Manufacturing Average Hourly Earnings of Production Workers - Seasonally Adjusted, January
1997 12.99
2007 16.98
However..
Total Private Average Hourly Earnings, 1982 Dollars - Seasonally Adjusted, January
1982 7.89
1997 7.61
2007 8.36
Total Private Average Hourly Earnings, 1982 Dollars - Not Seasonally Adjusted, January
1982 7.94
1997 7.66
2007 8.42
With a base year as an index the increases are not in the twenty-two percent neighborhood. (Sill an increase of course.) Isn't this index a better indicator of how well off the average wage earner is?
Notice the drop between 1982 and 1997 and now the increase, does this suggest we're adjusting to our "new" economy? IOW, can't both sides be more or less right? It hurt for awhile but we're making the adjustments.
You are just so sophisticated! You got any idea when the down turn on Wall Street will change direction?
The roofer will not care about a hourly wage if wall street keeps heading south
I happen to be in the IT industry.. My attitude is this, keep on learning if you don’t you have no job..
LM_AO!
The author does reference the 1982-based data; it's a little more telling than I presented because I did not look at wages prior to 1982; to wit, ". . . official statistics show that the average real hourly wage paid to American workers is lower today than in the 1970s. From a peak of $8.99 an hour in 1972, the average real wage (in 1982 dollars) declined steadily to a low of $7.52 in 1993 before rising again to $8.32 during the first half of 2007.14 The statistic that the average real wage remains below its peak of more than 30 years ago has become a rhetorical battering ram against trade liberalization, but it fails to capture the reality of the progress Americans have made in a more globalized era."
Then he goes on to try to explain it away with charts and several pages. I'll need to rest up before tackling that.
My guess is when "they" see that the little people are starting to buy, then buy and buy and run up the price as "they" sell to the little people. Then ka-boom! Repeat. :)
I've seen lots and lots of recessions, inflation, stagnation, and stagflation (once) since the 1940s. We all survived.
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