There is just no reason why an American worker should continue to earn $40 an hour and a foreign worker just 35 cents per hour. Most likely, the foreigner is better educated and more disciplined. I expect we’re going to see a great leveling of wage rates around the world.
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I agree with your conclusion, but think your example is completely on the extreme end of the spectrum.
Also, I disagree that “most likely, the foreigner is better educated and more disciplined.” Simply put, that isn’t what I’ve found based on my experience.
I’m speaking specifically in terms of engineering jobs, though. If what you said really were true about engineers, and the price discrepancies really were that huge, corporations would move ALL of their engineering overseas without a second thought.