Globalization and the Middle Class
David Dollar has served as the World Bank's China Director and is currently the U.S. Treasury Department's Economic and Financial Emissary to China.
Before this assignment, Mr. Dollar worked as Director for the development research department of the World Bank, overseeing the Bank’s research on the investment climate and growth. He co-authored the recent World Bank reports Globalization, Growth, and Poverty and Assessing Aid. His earlier work focused on aid and growth, and the determinants of the success and failure of reform programs supported by structural adjustment lending. He has been a key World Bank spokesperson on investment climate, globalization, and the effectiveness of aid.
He has a PhD in economics from New York University and a B.A. in Chinese history and language from Dartmouth College.
David Dollar: Well in some of my recent writings, argued that global trade does seem to be driving down wages for unskilled or semiskilled workers in countries like the United States and Western Europe. And I think this is an important political issue. There's no question that inequality has risen in the United States. Wages for ordinary workers have been fairly stagnant or have only risen a small amount, while incomes at the high end of the salary scale have gone up a lot. And at the very top of the income distribution, incomes have gone up spectacularly. So I do think that's a very important issue. I would argue that trying to address that by restricting trade is not likely to succeed. It makes the whole country poor. It's a bad way to treat the developing world. The developing world is benefiting a lot from this regime. So if you look around at the whole world, do you want to try to pursue a solution in the United States that gonna make the poor countries poorer? That doesn't appeal to me. I don't accept the notion that restricting trade can be any part of a progressive agenda. I like to think of myself as a pragmatic progressive. So I think when you worry about wages for ordinary workers in the U.S., which I do worry about, I think you have to look at the tax system in the United States. I think you have to look at public expenditure on education and key services that actually each ordinary people. So I think what Larry Summers is arguing is that there are fiscal measures and policy measures that would really make life better for the working class. I don't think Larry Summers is arguing against the free trade regime, but I think he's smart enough to realize that if you don't do something for ordinary workers in the United States, you may lose the political support for free trade. And that really is an important engine for the whole global growth.
Recorded on: 7/3/07
Does free trade hurt the developed world's middle class?
Delay, deny and deflect were the strategies Facebook has used to navigate scandals it's faced in recent years, according to the New York Times.
- The exhaustive report is based on interviews with more than 50 people with ties to the company.
- It outlines how senior executives misled the public and lawmakers in regards to what it had discovered about privacy breaches and Russian interference in U.S. politics.
- On Thursday, Facebook cut ties with one of the companies, Definers Public Relations, listed in the report.
Protected animals are feared to be headed for the black market.
Dogs' floppy ears may be part of why they and other domesticated animals love humans so much.
SMARTER FASTER trademarks owned by The Big Think, Inc. All rights reserved.