Alan Blinder is Not Stupid
By Arnold Kling
Despite Harold Meyerson’s make-work bias interpretation, Blinder’s actual paper says,
The job categories that will move offshore as the Information Age progresses will not disappear entirely from the U.S. and other rich countries. But their shares of the work forces of industrial countries (now there’s a vestigial term!) will shrink dramatically. And this shrinkage will transform our societies in many ways, most of them hard to foresee, as workers in the rich countries find other things to do.
Just as with the first two industrial revolutions, massive offshoring will not produce massive unemployment. Nor should we view it as a long-run threat to our standard of living.
Contra Meyerson, Blinder writes,
Both history and logic suggest that markets, not governments, will take the lead in effectuating the necessary shift toward personally-delivered services—and that markets will succeed. But the flexible, fluid American labor market will probably adapt better and faster than European labor markets will.