The American economy has changed drastically over the past 20 years in the sense that it has become more diverse and is characterized by increased exports and imports even though the latter has surpassed the former (The Levin Institute 11). When it comes to who benefits and who loses in the transition, those trading nations with the lowest opportunity cost of production under the concept of comparative advantage benefit more than those without (Trade Lecture Notes 4).
In trying to smooth the transition for its American workers, the US government has embarked over the years also to increase its production capacity or exports and restrict on too many imports, hence creating more jobs for its citizens as well as promoting its domestic products. What needs to be done at the federal, state, and local levels is to sponsor programs for workers to acquire new skills because of the changing economic structure.
Other additional measures that the government could implement to help the workers include providing export subsidies to encourage more exports and secure domestic jobs. Also, it can be more firm on quantitative restrictions so that domestic products can be promoted, hence securing jobs.
The changes that are taking place in the economy have seen schools and universities emphasizing more on a curriculum that empowers learners with technical skills relevant for the emerging industries or economies. The sorts of classes in educational institutions today incorporate technical and computer knowledge in its programs more than it was a decade ago.
The sorts of companies that are hiring students today are the service and higher-tech manufacturing sectors because the global economy is centered on information and computer technology as well as high-tech skills (The Levin Institute 48). This is very much different from before because it has transitioned from the manufacturing jobs to the higher-tech manufacturing and service sectors.
- The Levin Institute. Trade and Globalization. The State University of New York, 2011.
- Trade Lecture Notes. Trade and Globalization.