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Globalization/free trade has caused wage stagnation in developed countries by allowing capital to more easily move jobs to the developing world. This system has
by guelo 11y ago
Globalization/free trade has caused wage stagnation in developed countries by allowing capital to more easily move jobs to the developing world. This system has created way bigger profits for capital, increased wages for millions in the developing world, and more wealth overall.
All this has been enabled by the great triumph of "free trade" treaties that are the first way that humans have figured out how to create enforceable laws across countries. For example, the US recently repealed meat labeling laws due to a WTO ruling. This mechanism has allowed capital to bypass democratic forces that tend towards protectionism.
But the free trade treaties arere heavily rigged towards manufacturer's interests with intellectual property industries now trying to influence them more. If labor had a seat at the negotiation table for creating cross-country enforceable rules the outcome for workers could be better. Some ideas I can imagine off the top of my head,
- free movement of labor, not just capital
- environmental rules that prevent capital from shopping for the jurisdiction where they can pollute the most
- prohibitions on child labor, slave labor, trafficking, etc
- all countries provide free education through teenage years
- global tax shelter rules to prevent capital from hiding its profits