Globalization

New technology damages people lives. For example, throughout the history of the world, most people have been farmers. New technology like plows, sickles, and eventually tractors put many small farmers out of business as owners of large farm were able to produce more food quickly and cheaply. There was probably a booming wagon industry when automobiles were invented and Henry Ford improved the manufacturing process. I'm sure many in the industry were put out of work. These were real people, with real lives, and real families who were hurt by new technology.

Yet most people would agree that the agricultural revolution and the automobile have been very good for America in aggregate. Prices fall, and over all there is more to share. In the last few years there continues to be innovations that cause major shifts in industries. For example, the advent of PDAs and scheduling software probably decreased demand for secretaries. Wal-mart coming to town means the end of many Ma and Pa shops. Programmers working for lower wages in India may cause a shift in computer science jobs overseas. And now we're a little closer to home.

Again, in the long run there will be economic gains for both parties, Americans, and those with whom we trade. But there will be, again, some shifting in the labor pool. These, too, are real people who will have real difficulties. The question that must be addressed, then, is what can be done for those who are hurt in the transition. This is a major discussion being considered by very intelligent people, with no easy answers, but I have three suggestions that might help.

First, we need to stop wasting time and resources trying to lobby the government to protect jobs that will inevitably leave our economy. The faster people can adjust to new careers in which we will have a comparative advantage, the better off they will be, sooner, and the better off society will be, too.

Second, training and education must focus on general skills that will help workers to problem solve and adapt to new situations. It is not possible to predict where the economy will be in ten years, so in addition to job specific training, people must have the skills necessary to quickly learn new jobs.

Last, instead of cursing the system, we can look to those in our country and families' past with gratitude for their sacrifice. Because they were willing to put up with the challenges of new technology, we enjoy the quality of life we do today. Perhaps the sacrifices we make will benefit our children and grandchildren and allow them a style of life that we today cannot imagine.

Post inspired by: reading sections of Thomas L. Friedman's The World is Flat