One advantage of the global economy for American workers is that it creates high-paying jobs, especially in sectors like manufacturing and the digital economy. For example, nearly 45% of U.S. manufacturing output is exported, supporting manufacturing jobs with average earnings of about $32 an hour. Additionally, the digital economy has grown faster than overall employment and wages, offering many well-compensated jobs. Foreign investment also provides nearly 8 million high-skill, high-wage jobs in the U.S., with additional jobs supported indirectly
. One disadvantage is that globalization has led to significant job losses and wage pressures for less-skilled American workers, particularly in manufacturing. The U.S. has lost over 5 million manufacturing jobs and 70,000 factories over the past two decades due to trade deficits and offshoring. This has resulted in lower wages and fewer benefits for many workers, especially those without a college degree, and has hollowed out the middle class. The trade deficit with China alone displaced 3.7 million American jobs between 2001 and 2018, mostly in manufacturing
. In summary:
- Advantage: Global trade and investment create high-wage jobs and growth opportunities in manufacturing, digital sectors, and foreign-owned companies in the U.S.
- Disadvantage: Globalization causes job displacement and wage declines for less-skilled workers, especially in manufacturing, contributing to economic inequality and community decline
