The Role Of Globalization And Income Distribution In The United States

The US economy is going through some hard times: low growth, relatively high unemployment (still above 5%), declining competitiveness, massive job cuts in the oil and gas industry (including manufacturing jobs), and growing social inequality. All these problems were so significant, that they were the main topic of Barrack Obama’s "Address to the State of the Union” presented to Congress January 24, 2012. It has also been the focus of the recent Democratic presidential campaign. What is the role of globalization in exacerbating all of these problems? Is the loss of jobs in American industry a result of transferring the production to developing countries in order to reduce costs and save on payroll or it is due to the introduction of new technologies? Donald Trump thinks so. …show more content…
Can the market, on its own, without state intervention, solve the problem of employment and raise wages in various sectors of the national economy? Should the federal minimum wage be increased? These questions have long been the subject of heated debate in the US expert community, but after the economic crisis of 2008-2009, they have acquired a special urgency. 
 Just ten years ago, the impact of globalization on employment and distribution of wealth in developed countries was rather low. The economic growth rate of 2.5% was considered quite acceptable, and, in most of these countries, employment opportunities for workers with different levels of education are continuously expanded. But as developing countries became richer and more powerful, they changed the