A tradable is a product that can be bought easily from some other country. For example, a pair of scissors is a tradable, a haircut however is a non-tradable, no matter how cheap they may be in China, you'll have to pay local rates. Therefore, tradable prices are limited to international prices whereas nontradables aren't.
The reason I ask is that, if wages were to go up in tradable productive chains, part or the whole those productive chain COULD be outsourced, causing the loss of jobs in the US. That seems to be a reason why business would be against changing anything (amnisty would mean higher wages too). If, on the other hand, they are mainly on nontradable, all that will happen is a little inflation.
Keep in mind that the tradable industry is much less visible than non-tradable because you see a guy mowing lawn, or working on a house, but not working at a steel mill.
So, does anyone have numbers on this? No opinions or rants, please.
2006-07-23
17:15:59
·
5 answers
·
asked by
leblongeezer
5