In The News

Why “Fair Trade” Could Backfire for the US

David Dapice March 26, 2007
As manufacturing jobs continue to slip away from the US, Democrats in control of US Congress could be tempted to apply protectionist measures. But any regulations that attempt to restrict trade could backfire and chase more skilled jobs abroad. Economist David Dapice describes US economic problems – unbalanced budgets, a negative savings rate – as “home grown,” and the solutions require sacrifice...

The Secret World of Modern Slavery

Michael Smith March 14, 2007
Some jobs trap desperate workers into circumstances that are impossible to escape. At that point, the work is no longer a job but slavery. An example are the men who shovel hardwood into kilns to make charcoal for the Brazilian pig-iron industry, used for sinks, cars, refrigerators and other conveniences for wealthier consumers throughout the Americas. The US has laws against importing products...

Child Labor: The Cause Can Also be a Cure

Susan Ariel Aaronson March 13, 2007
Pressure of globalization has led to child trafficking and forced labor. Similar global pressure from public opinion can also put an end to the practice. Five years ago, reports emerged about small groups of children being trafficked and forced to pick cacao beans – the main ingredient for chocolate – in West African plantations. Outraged US officials, industry groups and activists organized the...

Silicon Valley's Immigration Problem

Elizabeth Corcoran March 12, 2007
Only a decade ago, the graduates of India’s finest universities looked to the US for jobs and other opportunities. “The US took “for granted that these talented immigrants want to come here and that they will help the next generation of American start-ups achieve greatness,” writes journalist Elizabeth Corcoran for “Forbes.” But recent graduates of universities like the Indian Institute of...

Hershey's Outsourcing

Herb Field March 7, 2007
Entire towns often grow up around a company. For example, Hershey, Pennsylvania, was nicknamed “the sweetest place on earth,” after Milton S. Hershey built what was then the world’s largest chocolate factory in 1903. Hershey constructed not only a factory that provided a luxury product to the middle class, but a community with comfortable homes and services for his employees. More than 100 years...

South Asians Taking Risky Route to Europe: Via Africa

Caroline Brothers February 26, 2007
The tide of illegal immigrants from West Africa to Spain’s Canary Islands has resumed, yet the ethnicity of recent passengers surprise authorities. South Asians attempting to enter Europe have long taken land passages, but are increasingly becoming customers of the poorly made fishing boats that ferry thousands from Africa to Spain each year. Decreased barriers to travel between South Asia and...

Inequality and Globalization

Ben Bernanke February 21, 2007
The US strives to provide equal opportunity for all individuals, but does not guarantee equal economic outcomes, explained US Federal Reserve Chairman Ben Bernanke in a recent speech. Still, new competition or inventions like the computer can make some workers’ skills obsolete, warns Benanke, and if the nation does not provide a support system for such workers, thus limiting some of the risks,...