Globalisation
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I was going to blog on this Economist article but it was saying a lot about a lot so i thought users on the forum might highlight what took their attention. But some points is though of interest
When countries with lots of low-wage workers begin trading with richer economies, pay for similarly skilled workers converges. Those in poor economies grow richer while in rich countries workers get poorer.
A recent report by the OECD found that, in its mostly-rich members, the average productivity gap between the most productive 10% of regions and the bottom 75% widened by nearly 60% over the past 20 years.
But people in the rich world are less able and willing to move to thriving places than in the past. America, once inveterately itinerant, has settled down a lot (see chart 3). Even so, it is still more footloose than Europe. Each year just over 2% of Americans move across state lines, whereas only 1.5% of Europeans move between regions within their home country. Despite the freedom of movement created by the EU’s single market, only 0.37% move from one country to another . But mobility in America is on the decline.
American industry has become more concentrated and more profitable. Superstar firms can draw on their financial and political capital to quash or take over would-be rivals, leaving fewer high-growth companies with the potential to anchor local economies.
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