unless your skill level is in the top 1% worldwide the great leveling will happen. protectionism will not save you.

At this point in the article Stiglitz stumbles. He mistakenly assumes that in our current depression/dislocation, technological improvement caused a loss of manufacturing jobs (productivity and portability overseas) that has forced a migration of workers to service industries. This has led to a decline in incomes across the board and stubbornly high unemployment.

Unfortunately, the reality is more dire. This technology shift also made it possible to shift service jobs around the world too. As a result, this is a recipe for an inevitable collapse in US and EU incomes (the effects of which are already being seen huge government deficits due to low tax receipts), a knock on global depression, and political chaos.

What are the solutions? Stiglitz would have you believe it is more government spending. An effort to build infrastructure and do more training. I don’t believe that will work. Most governments are already near bankruptcy and this crisis is global and not national.

• Uncategorized