social safety nets

A "New" Normal Requires Stronger Social Safety Nets

While this "Great Recession" highlights need for new social safety net, this need existed when U.S. accepted and promoted globalization. It is just that the "Great Recession" is making a bad situation worse.

Globalization has promised great things for everyone - lower cost products, more efficient international labor markets and economic growth. The problem is that with globalization there are winners and losers especially in U.S. The losers have been workers - particularly working class Americans. Globalization creates downward pressure on wages and salaries. Economists say that they have not been able to draw a connection because lower wages and increased globalization.