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Wednesday, June 4, 2008 12:00 AM

Exodus of the Polish plumber

In a borderless Europe, cheap workers come -- and then they go

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Wednesday, June 4, 2008 12:36 PM

Free Market Normalization

Isn't this exactly what we expect from a free labor market? A normalization of wages across the previously separate economies that takes workers from one place to another until their home economy reaches balance with the others, thus making working at home more attractive.

The US seems to believe in free markets for lots of things, but certainly not for labor. Opening the labor market would mean a dive in wages, followed by an increase and steadying. The question is whether that final balance point would be higher (I doubt it) or lower than current wages.

Don't free markets essentially undo the falsifying effects of subsidies and tariffs and other market controls?

I don't know what's "good" or "bad" from an economic management point of view, but it seems as though globalization is, at root, a planet-wide push toward market normalization that will raise the living standards of the poor and lower the living standards of the rich, if left unchecked.

But will wealthy countries be willing to undergo that process? Or not?

Thursday, June 5, 2008 05:58 AM

No no no

All of this assumes that all migrant workers never export their earnings back home. But they do and that's what drives policy. It's in Mexico's interest, or Poland's to enact policies that cause people to leave so that they will send someone else's money back home. Mexicans send over 30 billion dollars a year back to Mexico from the US. In fact the Mexican government will will match those funds if they are used for 'community development'. So there is a strong incentive for Poland et al to keep local wages low enough so that their skilled and semi skilled workers leave, earn money elsewhere and mail it back. It's free money to the destination country.

Thursday, June 5, 2008 06:35 AM

Don't Complain

When an intelligent human being is willing to leave his own home, migrate with difficulty to your doorstep and perform your dirty work for miniscule surplus cash, you are quite fortunate. Otherwise you ought to cancel the gym membership, sharpen grandpa's old tools and get dirty.

Thursday, June 5, 2008 06:55 AM

The only three requirements for plumbers

1: Don't bite your fingernails

2: Payday is Friday

3: Shit doesn't run uphill.

Friday, June 6, 2008 07:12 AM

Not just Europe

We have Polish friends here in the US that are actively considering moving back home- they see more potential opportunities there.

Land of opportunity no more?

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