Americans are overpaid

Adel Saaid
EAP 1
Economy
Hutchinson, M., Hadas, E.(2009, November 11). Americans are overpaid. Retrieved on November 13, 2009. http://money.cnn.com/2009/11/11/news/international/global_american_wages.breakingviews/index.htm


summary:

This article talks about how the world economy is rebalancing by reducing the wage gap between U.S. workers and the rest of the workers in the world. Certainly, American workers receive high wages compared to the rest of the workers in the rest of the world. U.S. workers have higher productivity, achieve the high quality of education, the availability of capital, and the infrastructure. But the current economic developments have led many countries to be an important player in economic competition and the availability of labor, cheap capital, and easy access to international markets as well as benefit from the communications revolution. If the American worker would compete, they should reduce wages in balance with the rest of the workers in countries with emerging economies.

Reaction:

In my opinion, I think this is the time to do the restructuring of the U.S. economy. The economy suffers from the U.S. financial crisis and economic problems. In addition, there is strong competition from the modern states economically. These countries have cheap labor, raw materials, and have low taxes that were missing at the U.S. economy. Thus, the time is appropriate to conduct these reforms so that the U.S. products compete in the international market. Otherwise, that day will come when you can not find anyone to buy U.S. products, despite their quality and reputation.