More Economists Finally Admitting Globalization a Root Cause of Decline of U.S. Middle Class

Mark Hana, formerly of Fund My Mutual Fund who is now at Market Montage had an excellent post this past week on the jobs situation and the relationship it has had with the rise in globalization.

Like Hana, we too have discussed the impact of increased productivity as being a driving force in this once again jobless recovery.  Hana goes a bit further in his post which he used to talk about quite frequently in the past which is that the rise in globalization may have resulted in lower costs for Americans but that it has also resulted in fewer jobs.

You could argue that the balance of living standards has changed with the rise in globalization.  Those in emerging markets have seen there living standards rise as those in develop markets have seen a decline.

The chart below tells allot about the job situation in America.  Healthcare and education related jobs cannot easily be outsourced as manufacturing, finance, accounting, and a whole list of other professions.