The Economist has a great cover article on the current state of globalization, and the report is not good.
Since 2001 the pay of the typical worker in the United States has been stuck, with real wages growing less than half as fast as productivity. If you look back 20 years, the total pay of the typical top American manager has increased from roughly 40 times the average””?the level for four decades””?to 110 times the average now.
What is to be done about this poisonous mix? If globalisation depends upon voters who, as workers, no longer think they gain from it, how long before democracies start to put up barriers to trade? If all the riches go to the summit of society and that summit seems beyond everybody else’s reach, are the wealth-creators under threat?
If the winners are difficult to curb without doing damage to your economy, the losers are tough to help.
All you readers out there in your 10s, 20s, and 30s, whether you are preparing for a career or just starting one, you need to ask yourself: is it possible that someone, somewhere, in the near future could do my job cheaper than I’m doing it now? Am I doing something that can be automated?
As the global economy becomes more integrated, companies facing more international competition will look to cut costs. If you’re not in a secure job, think about how to get one.