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This has been predicted: https://en.wikipedia.org/wiki/Factor_price_equalization https://en.wikipedia.org/wiki/Factor_price_equalization. Under this model, inco
by logicchains 9y ago
This has been predicted: https://en.wikipedia.org/wiki/Factor_price_equalization https://en.wikipedia.org/wiki/Factor_price_equalization. Under this model, incomes (especially those of lower-skilled workers) in developing and developed countries will eventually meet somewhere in the middle. Once all countries are equally developed, this downwards pressure on low-skilled wages in developed countries will abate. Restrictions on outsourcing and trade would prevent this to a degree, but doing so would slow down the income increases in developing countries, hence many economists do not support such restrictions, as it's hard to make an economic argument that developed countries' citizens should be privileged over those of developing countries (although a political argument can certainly be made), and more trade is generally seen as increasing the overall size of the pie.