(2003-08-12) Arnold Kling Globalization

Arnold Kling on the cycle of Globalization. The process is likely to be very convoluted. Maybe the Indian workers will outsource the production of yogurt. The yogurt producers may outsource the production of milk to Australia. The Australians may want beer, which they outsource to Germany. The Germans want drug research, which they outsource to the United States, because we still allow drug companies to profit from research. With low interest rates, thanks to the fact that all of our trading partners want crateloads of U.S. Treasury securities, one of our drug companies can finance a new research facility. To build it, the construction company may hire workers who are new immigrants. The new immigrants might want schools where their children can learn to read English. These schools might outsource some of their teaching to Rachel. (Just kidding. The Teachers Union will not allow economic activity. And they do not seem to care much for teaching English to immigrants, either. But you get the idea.) Hmmm, what happens when the PharmCo-s move their research there, and our new houses get prefabbed in China? Will we be left with Pizza Delivery, like in SnowCrash?