Why do some people believe that Wages and Working Conditions are worsened because of Globalization?
Short answer – the ability of American companies to hire cheap foreign laborers is depressing wages in America be decreasing labor demand in America (and increasing available worker supply as well). Also, Americans have been working longer and harder since the current wave of globalization started than in the past – to keep up with the downwardly falling wages. There are two sets of conflicting data – the late 19th Century in the US was a time of enormous economic expansion, we were basically “free traders” back then, and wages grew. Working conditions didn’t improve until the early 20th Century and beyond. On the other hand, there is little evidence that the current wave of “free trade” has done anything to increase wages or improve working conditions. There is evidence that the increased ability to buy cheap labor from China, Mexico and India is depressing wages in key sectors in the US economy – and the proponents of globalization have failed to show how the market is going to “work
