Americans are overpaid — because the success of globalization and free trade has enabled middle class workers from around the world to compete for the same jobs many Americans have. Same ability to do the work, willing to work for far less purchasing parity cash.
If America stays with free trade, Americans will make less money until much of the rest of the globalized work force catches up.
If America gets more protectionist, there will be retaliatory anti-American tariffs, so it’s very unlikely for average Americans to see economic advancement, and quite possible for there to be a Smoot-Hawley type trade contraction followed by a long depression. Until Americans are no longer overpaid, but are grateful (again) for jobs that pay similar to overseas jobs.
There are no good solutions to an oversupply of overpriced houses — nor of the oversupply of overpriced American workers. The gov’t should be strongly supporting new businesses and new entrepreneurs. But Obama hates such folk … too greedy.
(via Fabius Maximus and free trade talk)