The story of globalization from a US point of view continues. Here AB reader Denis Drew is highlighted at DeLong’s website:

Paul Krugman on globalization

Brad DeLong asks ‘what did PK miss?’

Comment of the DayDennis DrewGLOBALIZATION: WHAT DID PAUL KRUGMAN MISS?: “I’m always the first to say that if today’s 10 dollars an hour jobs paid 20 dollars an hour…

…(Walgreen’s, Target, fast food less w/much high labor costs) that would solve most social problems caused by loss of manufacturing (to out sourcing or automation). The money’s there. Bottom 40% income take about 10% of overall income. “Mid” take about 67.5%. Top 1%, 22.5%. The instrument of moving 10% more from “mid” to the bottom is higher consumer prices arriving with the sudden reappearance of nationwide, high union density (see below for the easy application). The instrument of retrieving the “mid’s” lost 10% is Eisenhower level confiscatory taxes for the top 1%.

Jack Kennedy lowered max income tax rate from 92% to 70% to improve incentives (other cuts followed). But with the top 1% wages now 20X (!) what they were in the 60s while per capita only doubled since, there will be all the incentive in the world left over while we relieve them of the burden of stultifying wealth. 🙂

The new blue Congress (if it manages to get itself elected by standing for nothing — I wouldn’t bet on it if Trump takes a fall and Pence reapplies intelligence to Republican chicanery) has merely to mandate union certification and re-certification elections at every private workplace; one, three or five year cycle, plurality rules on the latter. Not my idea:

Why Not Hold Union Representation Elections on a Regular Schedule? Andrew Strom — November 1st, 2017

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