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Saturday, December 24, 2016

Be 'very afraid' about globalization's next phase

Be 'very afraid' about globalization's next phase

2016 has been a wake-up call in the U.S., U.K. and beyond on the pain felt by many people from global trade. But this could be just the beginning.

"What comes next in globalization? Be very afraid," says economist Richard Baldwin, who worked on trade negotiations for President George H.W. Bush and has just published "The Great Convergence: Information Technology and the New Globalization."
President-elect Donald Trump is focused on the 5 million U.S. manufacturing jobs lost since 2000 due to globalization and technology. That was the Phase 1 of globalization.
Now get ready for Phase II when robots and low-cost workers abroad replace service sector jobs too. Phase II could have an even bigger impact on jobs. Consider that the U.S. has created about 12 million service sector jobs under President Obama alone.
"We could have hotel rooms in New York cleaned by people sitting in Guatemala driving robots," Baldwin says. "This isn't Star Trek."
Higher skilled jobs won't be immune either. Already surgeons can perform operations by directing robots from remote locations. It doesn't matter if the doctor is a few feet away or thousands of miles away. He calls it Remote Intelligence or RI. http://money.cnn.com/2016/12/23/news/economy/trump-trade-globalization-just-beginning/

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