NETWORK FOR ECONOMIC DEMOCRACY Outsourcing
NAVIGATION Home Debate: |
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OUTSOURCING OF PRODUCTION
VIA SUBSIDIES & IMPORT CERTIFICATES Jobs may be the critical issue for the two party system. If we do not have an effective full employment system to protect the dignity of adult life and the tranquility of the domestic scene, we cannot expect stability in politics and a world at peace. Yet more than that is our goal. Prosperity here and abroad depends on the supply of goods and services, not just on the demand. Our system of price, profit, investment, cost for labor and cost to sustain purchase of the output produced, is flawed by the internal contradiction between what consumers earn and what they are obliged to spend in support of price. That contradiction has cost the global economy the protections afforded by a stable middle class. The solution to the contradiction can be subsidized earnings, as discussed in considering a federal dividend, and/or prevention of a race to the bottom (where wages are below middle class standards) and limits on imports to keep them in balance with exports. These ideas run counter to free trade, where the only idea accepted is the one that ignores results in favor of dogmatic assertion. go to OUTSOURCING-page 2 |