Wage Issues: Globalization and Gender Factors

I think overall globalization has helped American workers. Granted, there have been some negative effects such as the lowering of wages in certain sectors to keep up with a low wages of competing global manufactures. However, weighing the overall benefits and negatives in an objective light one can see how globalization is helping the economy.

A number of Japanese auto manufacturers have opened a plants in the United States. This is part of globalization. This is creating jobs. The benefits of free trade outstrip its liabilities. If a US company can't sell goods in another country due to trade restrictions then this hurts employees. If a foreign company can't sell their low-priced but high quality goods to Americans then the American consumer suffers. This means that American wage earners will have less to buy for their wages. This means that they will have less money to invest in more productive endeavors which may in turn create more jobs.

Globalization is inevitable. It can't be stopped. The only thing about globalization that I disagree with is the insinuation of a world government. I think each country should be sovereign and maintain its own borders. However, the drawbacks of a country not expanding its economic structure around the world are notable. Americans should grit and bear the stark reality that we are now competing with each other on a global stage.

Gender and wage issues:

History is replete with failures of a centralized government trying to control the free-market system. Whether it is socialism, communism, or dictatorship the same rings true. Now if a central government states that women and men must be paid equally regardless of their skill level, level education, or experience than this is doomed to failure.

Remember, if the government instituted a law requiring men and woman to be paid the same rate this would also mean that unqualified males will have to be paid the same amount as qualified women. It goes both ways. Furthermore, when you pay someone a wage based on their gender this flies against the face of a meritocracy. The failures of affirmative action should be noted by those who feel that pay should be based on gender.

One does not have to face reality but reality will not go away. The fact is that it is still the case that many women take time off work to raise a family. A business owner choosing between the payment schedule of a woman who has been out of work for a few years versus a man who has been diligently working all the time will rationally pay the male more money because he offers more time and experience to back up higher pay. This may not be politically correct but this is the true case in this situation.

Granted, in male and a female who share the same qualifications should be given an equal opportunity to present their services at a similar rate of pay. However, centralized planning is not the proper response. Communism, socialism, or affirmative action is intellectually bankrupt and has failed in the real world. Let the free-market system this side the correct wages.