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Archive for the ‘globalization’ Category

What’s a U.S. corporation?

August 24, 2011 7 comments

from David Ruccio

It used to be that a U.S. corporation had its headquarters in the United States, paid U.S. taxes, and employed mostly U.S. workers.

Not anymore.

Now, while they still may have their headquarters officially located in the United States, they don’t pay much in the way of taxes, and many of the jobs they’re creating are overseas. In fact, they no longer even report the mix of U.S. and foreign jobs, even as they clamor for a tax holiday.  Read more…

Categories: globalization, jobs

New Video Deconstructs CGE Trade Models

July 24, 2011 1 comment

from Jim Stanford

Every time the globalizers come along with a new NAFTA-style free trade agreement, they invoke the findings of yet another high-falutin’ computerized general equilibrium (CGE) model of the projected (and inevitably mutually positive) impacts of the deal.

We’ve seen this time and time again: a numerical simulation model (not based on econometric analysis, but constructed purely by attaching illustrative parameters to a Walrasian general equilibrium framework of simultaneous equations describing market-clearing in all markets) is solved, before and after some sypothesized trade policy liberalization, and the change in outcome is interpreted as the “predicted” impact of freer trade.  As we know, the positive outcome depends on sustained full employment, a lack of international capital mobility (and hence no change in aggregate trade balances), the sharing of gains (or compensation) within each participating country, a lack of cumulative causation in increasing returns industries, and a whole host of other assumptions that are necessary for the model to solve — but which have nothing to do with the real-world economy in which we live. Read more…

Categories: globalization

Mercantilism Works?

January 8, 2011 2 comments

from Jim Stanford

I have gathered some interesting comparative information on the recent economic performance of the G7 economies.  My immediate goal was to try to puncture the national “triumphalism” which Canada’s ruling Conservative government has been (wrongly) wielding in an effort to deflect any criticism around Canada’s still-dismal labour market and macroeconomic circumstances.  Read more…

Categories: globalization, Recession

Kevin P. Gallagher and Ha-Joon Chang

November 12, 2009 1 comment
Categories: globalization
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