“”The study rated every U.S. county for their manufacturers’ exposure to competition from China, and found that regions most exposed to China tended not only to lose more manufacturing jobs, but also to see overall employment decline. Areas with higher exposure also had larger increases in workers receiving unemployment insurance, food stamps and disability payments.
The authors calculate that the cost to the economy from the increased government payments amounts to one- to two-thirds of the gains from trade with China. In other words, a big portion of the ways trade with China has helped the U.S.—such as by providing inexpensive Chinese goods to consumers—has been wiped out. And that estimate doesn’t include any economic losses experienced by people who lost their jobs.
[A new study by David Autor, Gordon Hanson, and David Dorn](a new study from David Autor, Gordon Hanson, and David Dorn) confirms common sense.
It’s a vicious feedback loop: we demand WalMart prices, which puts pressure on corporations to outsource US jobs to cheaper regions, cutting our own income, spurring more demands for WalMart prices… Cheap goods and low unemployment cannot coexist.
(Via Marginal Revolution)
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edporras reblogged this from dbreunig and added:
We live in an unsustainable society. It doesn’t really take much to realize it if you think about it for a minute.
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