Chapter 5: America and Free Trade-- Is Ricardo Still Right?

I believe that this chapter is best summarized by Friedman's last sentence in the chapter,

The way to succeed is not by stopping the railroad line from connecting you, but by upgrading your skills and making the investment in those practices that will enable you and your society to claim your slice of the bigger but more complex pie.

This is what we, as a country, need to be focusing on. It never ceases to amaze me how stupid and selfish a lot of the people that are running this country are, and it kills me to watch as other nations look on in disgrace as they pass us on the most important issues for a people. I'm talking specifically about our education system. We are quickly losing our grip on the top spots for higher education, and we have fallen well below acceptable standards for public education. We see these things happening, yet we do nothing to improve the quality of education for our people? We're the richest nation in the WORLD, how can we not provide top-notch educational programs for those who are supposed to be our future? Friedman hits the nail on the head when he says that in order for us not to be caught in the downside of free trade in the flat world, that we will have to move vertically, and prepare ourselves to take on higher level jobs that will not be outsourced, will not be offshored, and will not be permanently lost to the American people. But the only way to move vertically is by learning the new skills and adequately preparing our youth for this new enviornment. Friedman writes, "as long as the pie keeps growing and getting more complex, each country should find things in which to specialize--provided it keeps educating and growing the skills of its workforce."

Oh, and I agree with Friedman; Ricardo is still right. It's a matter of simple economics. Although the supply of Indian labor is large, as the demand for thier labor increases, so too will their wages. It's only a matter of time before wages between Indian workers and American workers are about equal, and then outsourcing will move on to the next cheapest area with skilled workers comparable to India. Where will that place be? Who knows. But with the world becoming flatter everyday, try not to be too alarmed when you find out.