By Sandro Scocco is Chief Economist at the Stockholm-based think tank Arena Idé and has a background as the Chief Economist of the governmental research institute ITPS. He is also a former Director at the Labour Market Board and served during the 1990s as an adviser to several Swedish social democratic ministers.
From the Social Europe Journal, December 9, 2016
A popular narrative today is that low-income groups in the western world have fallen behind owing to jobs lost to new machines and to low-paid jobs overseas. Political populists like Trump or Le Pen have happily exploited this frustration with nostalgic, nationalistic and anti-free trade messages. A new study shows that this narrative has little support in historical trends.
Certainly, large groups have fallen behind in recent decades. But this is true not only of low-income groups but also of large parts of the middle class in many countries. Take, for example, those with higher education in the US; their real incomes have stagnated in the past 15 years. In the whole of the industrialised world median wage growth has fallen markedly behind GDP growth. By contrast, the top 1 percent have increased their income much faster than the rise in GDP and, in some countries, including the US and Sweden, they have more than doubled their income share.
So, there is a clear breeding ground for anger and frustration among broad groups, and not just among low-income earners, but is it really related to technology and trade?
By Daniel Griswold, Los Angeles Times
This Op-Ed article was published by the Los Angeles Times on August 1, 2016. To visit the article in the L.A. Times click on the link below:
See also “The Technology Imperative: What Jobs, Jobs, Jobs, Really Means in the 21st Century”, By John Psarouthakis, Gavdos Press, 2012
Foreign trade took a beating at both major party conventions, with speakers blaming free-trade agreements for all but wiping out U.S. manufacturing and eliminating millions of middle-class jobs. Both Donald Trump and Hillary Clinton have promised to renegotiate or abandon trade agreements with key U.S. trading partners such as Mexico and Canada. That would be a colossal mistake.
The number of manufacturing jobs in the United States has indeed been in a long decline since the late 1970s, but that disguises the true story of American manufacturing. Nostalgia for a bygone era blinds politicians and voters alike to the reality of a revitalized sector of the American economy that is thriving in a global market.
Clinton, Trump, the Obama Administration, and the media—all are guilty of obfuscation, deceit, and dishonesty.
Professor Allan H. Meltzer: He is an American Economist and the Allan H. Meltzer professor of Political Economy at Carnegie Mellon University’s Tepper School of Business. He is the author of a large number of academic papers and books on monetary policy and the Federal Resrve Bank. Dr. Meltzer’s two volume books, “A History of the Federal Reserve”, are considered the most comprehensive history of the central bank. He is considered one of the world’s foremost experts on the development and application of monetary policy. Currently he is also President of the Mont Pelerin Society. Dr. Meltzer originated the aphorism “Capitalism without failure is like religion without sin. It doesn’t work.”
Prof. Meltzer is a Distinguished Visiting Fellow at the Hoover Institution. This article is from his monthly column on Defining Ideas at the Hoover Institution.
It is posted in http://www.hoover.org/research/
Most of us learn at some point that politicians tell lies. We expect them to stop once they hold office or to face the consequences. In the past, politicians that violated the public trust resigned, most notably President Richard Nixon. Other lesser officials have also been punished for abusing public trust. No longer. In campaigns, and in office, politicians and their aides or supporters deliberately lie about matters of importance.
Ben Rhodes, a National Security Adviser in the Obama administration, bragged recently about the lies officials told to support a major foreign policy decision—the nuclear agreement with Iran. That agreement permits Iran to possess nuclear weapons in about ten years. Rhodes publicly admitted that the Obama administration claimed that the new Iranian government was a moderating influence despite the fact that experts at the Central Intelligence Agency warned that the new government in Iran was not moderate. According to Rhodes, that false claim was critical for getting the deal approved by Congress. He and his colleagues suffered no consequence for having lied.