offshoring and automation are two distinct problems. automation is just capital deepening, it raises workers' productivity and wages. offshoring effectively expands the labor supply, it lowers US workers' wages
-
-
that’s because the demand schedule for laborers who could potentially play cello includes both cello-labor and other skilled labor in sectors where productivity did rise a lot
-
in sectors like eg lady’s maids the marginal productivity of the unskilled workers went up but rather than the purchasing power of lady’s maids’ rising, the sector disappeared as the labor reallocated
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.