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This is a very globalist view. What about region specific jobs? The worker in Bangladesh absolutely isn't in the local competitive pool for service jobs. When w
by tekknik 7y ago
This is a very globalist view. What about region specific jobs? The worker in Bangladesh absolutely isn't in the local competitive pool for service jobs. When we talk about exported goods, then sure.
- drup86 7y agoI said the same thing in a comment further down.
- dragonwriter 7y ago> This is a very globalist view. We have a very globalized economy, whether that's your preference or not. > The worker in Bangladesh absolutely isn't in the local competitive pool for service jobs Jobs are not things that inherently exist in places and which people compete for, jobs are created by the confluence of supply and demand. Yes, some demand is highly localized, such as for certain service work, but demand for service work also tends to have very high price elasticity. Reducing supply can work to drive up market clearing price of labor in those areas, but only while simultaneously reducing the number of units of labor actually traded. You aren't keeping the same jobs and reducing competition, you are reducing the number of actual jobs to essentially those that would have been filled at the higher salary whether or not the lower paid worker was also, additionally, employed. And you are reducing domestic economic activity and velocity of money, because the trades that don't happen in the service economy because of the price effect of the labor constraint either become deferred activity or go somewhere else, mostly goods, some portion of which are imported, either of which is a local loss compared to domestic service trade.
- tekknik 7y agoSo the worker at mcdonald’s has competition from bangladesh because of price elasticity? how does the worker from bangladesh compete with local only jobs? you’ve failed to make your point.