A place for economics?

[dsm]

Anyone know of bulletin boards (similar to this one) where they discuss the state of the US and world economy as well as different approaches to better future economies? For instance, I would like to discuss the differences between globalization and localization as a means to producing more jobs. While the people here are very good, I was wondering if there are other places that might be more focused on this type of information. Even if I don't participate in the discussion, I might learn something by just lurking.

[Drooper]

Originally posted by dsm
Anyone know of bulletin boards (similar to this one) where they discuss the state of the US and world economy as well as different approaches to better future economies? For instance, I would like to discuss the differences between globalization and localization as a means to producing more jobs. While the people here are very good, I was wondering if there are other places that might be more focused on this type of information. Even if I don't participate in the discussion, I might learn something by just lurking.

There are some pretty clever and knowledgable people around here.

Regarding "globalisation" and "localisation". If you mean by that the growth in international trade, then the answer you seek is elementary microeconomics (and not in fact linked to levels of employment).

Under assumptions that closely resemble a market based economy like most in the developed world, an economy will naturally approach full employment. different labour market structures, say minimum wages can change that result.

What trade does is maximise utility and income. Look up "Edgeworth Box Diagram" on Google and then do some reading.

[dsm]

Originally posted by Drooper

There are some pretty clever and knowledgable people around here.


No doubt. However, to get the topic to come up, I would have to initiate the conversation and be prepared to make some points. Not being strong in economics, I'm not sure I could do that, so I was kind of looking for various discussions on current global economics that I could lurk in to learn what the general views are.


Regarding "globalisation" and "localisation". If you mean by that the growth in international trade, then the answer you seek is elementary microeconomics (and not in fact linked to levels of employment).


I was thinking that, on a world-wide basis, when you factor in rising productivity, the numbers of jobs in the economy will never rise to the level of full employment and that the level of unemployment will rise as productivity increases. In some ways, I was thinking that greater "localization" of the economy would tend to maintain a higher level of employment.


Under assumptions that closely resemble a market based economy like most in the developed world, an economy will naturally approach full employment. different labour market structures, say minimum wages can change that result.

What trade does is maximise utility and income. Look up "Edgeworth Box Diagram" on Google and then do some reading.

Too much economic theory for me right now. I'm looking for more practicals on the application before I get too far into the theory.

[Drooper]

Originally posted by dsm
I was thinking that, on a world-wide basis, when you factor in rising productivity, the numbers of jobs in the economy will never rise to the level of full employment and that the level of unemployment will rise as productivity increases. In some ways, I was thinking that greater "localization" of the economy would tend to maintain a higher level of employment.

The simple answer is that the wages will move to the marginal product of labour, ensuring that any labour looking to be used is used. If unemployment exists, (real) wages fall due to competition (e.g. you and I scrambling for the same job in a recession), until the productive value of the labour exceeds the wage and a profit incentive arises for firm to hire more labour (notwithstanding some other possible complications not worth dealing with here)

Over time, rising productivity just delivers higher wages, not higher unemployment.


Too much economic theory for me right now. I'm looking for more practicals on the application before I get too far into the theory.

That is the problem with most of the public debate about issues such as "globalisation" (yuck I hate that phrase). Many results in economics appear counter intuitive unless you do a bit (not a lot) of the theory.

[dsm]

Originally posted by Drooper

Over time, rising productivity just delivers higher wages, not higher unemployment.


But in a global economy that has artificial barriers (ie. country boundaries), productivity can cause extremely sharp changes in the economic landscape (ie. people coming onto the market who have extremely low wage requirements). Theoretically, in the long term, these things will even out, but the practical realities of the world would seem to make the theory unpalatable.

Also, is it my imagination or are the swings in the world economy (ie. between good times and bad) becoming more pronounced as time goes on?