On Wed, Sep 29, 2004 at 03:10:26PM -0500, Dan Minette wrote:

> From: "Gautam Mukunda" <[EMAIL PROTECTED]>
>
> > --- Erik Reuter <[EMAIL PROTECTED]> wrote:
> >
> > > It's too late for Gautam's request, but Brad DeLong wrote an
> > > insightful article about offshoring yesterday:
> >
> > It's not, actually.  My panel's on Saturday.  Thanks for the
> > article.
>
> Gee Gautam, here Eric did you a favor and you go and tell him he's
> wrong.

Dan: Actually, you're wrong too! (Erik).

Gautam: Cool! I'd like to hear about the panel afterwards if you have
any interesting stories.

I can't cite a good article on it, but something I've read several
times (mentioned offhand in articles about offshoring) is that the most
important thing we can do to support free trade is to improve the safety
net for the unemployed in America.

The reason is that millions of Americans are viscerally afraid of
"losing my job to a foreigner who will do my job for 20% of my
salary." While economists and economist-wannabes like ourselves realize
that in the long run, this is a GOOD thing, nevertheless there IS some
basis in reality to their fear. One problem is that many Americans lose
their health insurance if they lose their job -- this really needs to be
addressed if we want the public to favor free trade. I also think that
a lot more could be done on a national level to support adult education
and (re)training. As long as people are afraid of how they will take
care of their family 6 months from now, it is difficult for them to
think rationally about the longer term good of the world.



-- 
Erik Reuter   http://www.erikreuter.net/
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