Annotated Bibliography: Work and International Trade

What are the root causes of unemployment? Havemann and Kempster examine the growing phenomenon of fewer jobs being added to economies throughout the world even as the economies themselves are prospering. The causes for unemployment are thought by some to be attributable to increased productivity: as machines improve to the point that they require fewer and fewer workers while producing greater volume, businesses find that they need to hire fewer workers.

This view is not shared by many economists and other analysts, who hold that the problem is not productivity, but rather high minimum wages and benefits. Nations that have high minimum wages and non-wage benefits (holiday and sick leave, for example) may find that it is more expensive to hire workers in that the workers cannot produce more than they receive in compensation. At the same time, generous unemployment benefits in these same nations make it attractive not to work, further adding to unemployment. These nations also suffer from relatively high tax rates since fewer workers have to support the generous benefits offered by the government.

Although the leaders of industrialized nations could take steps to change this situation, the political environment renders it unpopular for them do to so, with the result that no change is likely in these areas for some time.

. . .
th renewed commitment to jobs and the workers. The Cummins Engine Company, in Columbus, Ohio, is indicative of the companies that have returned and their strategies. Although the engine factory is still unionized, there is a greater spirit of cooperation between labor and management, and teams are used much more extensively than they have been in the past. Productivity at the once-closed factory has soared. However, workers are making considerably less than they did in years past, and much is made of the fact that most workers could not purchase the Dodge trucks that the engines are made for (of course, most workers for Rolls Royce cannot buy those products, either). The allure of manufacturing companies offering jobs has led to strong competition between cities and regions, even though the jobs are relatively low-paying. Union representatives are hopeful that in the future, better wages will be available in order to account for the increased productivity. Templin, N. (1994, March 11). Auto plants, hiring again, are demanding high-skilled labor. Wall Street Journal, n.p. As American auto manufacturers are increasing their domestic production, a change is becoming apparent in the makeup of the workforce: employees in
. . .

Some common words found in the essay are:
Street Journal, Havemann Kempster, Business Week, Rolls Royce, East Asia, Weimar German, Columbus Ohio, Rust Belt, Weimar Republic, Zachary Ortega, wall street, street journal, journal np, wall street journal, street journal np, increased productivity, fewer workers, international trade, increased international trade, minimum wages, generous unemployment, causes unemployment, blue collar,
Approximate Word count = 1295
Approximate Pages = 5 (250 words per page)

More Essays on Annotated Bibliography: Work and International Trade