[lit-ideas] Re: Unemployment (Re: The war is distracting from the good news!)
- From: Teemu Pyyluoma <teme17@xxxxxxxxx>
- To: lit-ideas@xxxxxxxxxxxxx
- Date: Tue, 25 May 2004 07:43:25 -0700 (PDT)
Forgot the link to the report, well worth reading.
http://www.ceip.org/files/publications/pb30polaski.ASP
Teemu
--- Teemu Pyyluoma <teme17@xxxxxxxxx> wrote:
> I tend to agree with Krugman, but as a report from
> Carnegie Endowment convincingly argues, we have a
> global unemployment problem resulting from lack of
> demand. Due to free trade, global unemployment lead
> to
> US unemployment. It is not reasonable, given the
> trade
> deficit, to expect US to generate more demand. Euro
> zone countries could do more, but are hampered by
> conservative fiscal policy.
>
> The report outlines specific policy solutions to
> increase employment and thus demand globally:
> - Doing away with agricultural subsidies in USA (and
> EU) would generate agricultural jobs in developing
> countries currently being destroyed by subsidized
> imports from US and Europe.
> - Labor Rights as part of trade agreements, which in
> effect means that workers in developing countries
> will
> have some money to spend, that is they generate
> demand.
> The report gives bilateral treaties with Jordan and
> Cambhodia as positive example, OTOH: "Since 2002 the
> United States has adopted a much less rigorous
> approach to labor rights in trade agreements. U.S.
> negotiators now require only that trading partners
> enforce their existing labor laws, even if those
> laws
> are so flawed that workers are denied basic rights.
> For example, if a country's labor law allows
> employers
> to fire workers who try to organize unions, the
> current U.S. trade model requires only that those
> laws
> be effectively enforced."
> - International co-ordinated macroeconomic policy.
> That is G8 getting their act together (like Chinese
> allowing their currency to rise in value.) However,
> "(i)nternational macroeconomic policy coordination
> is
> not easy, and it is likely to be particularly
> difficult in the current international atmosphere
> where trust is under strain." Which is putting it
> very
> politely, and while there is much blame to go around
> for failures of trade talks, etc. Bush and company
> deserves heaps of it for destroying couple decades
> of
> work on establishing international co-operation in
> general.
>
> The point: Bush's failures internationally are the
> root cause of his domestic failures.
>
>
>
> Cheers,
> Teemu
> Helsinki, Finland
>
>
>
>
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