Dean Baker is widely seen as "to the left" of Barack Obama and Obama's famously (among some people) evil "neoliberal" economic team. But Baker, like Robert Reich and to some extent Paul Krugman, are deeply committed to a orthodox economics ideology that is essentially conservative. Here's Baker:
[The Wall Street Journal] has an article the point of which is to warn readers that engineering is increasingly being outsourced to Asia. This may be bad news to people who hope to work in engineering, but for the rest of us, it means cheaper products, just as buying clothes and shoes manufactured abroad meant cheaper products.So, here we are in 2012, and the "left/liberal" economists are still pushing the theory of the service economy. Andy Groves, one of the founders of Intel, pointed out the social costs
You could say, as many do, that shipping jobs overseas is no big deal because the high-value work—and much of the profits—remain in the U.S. That may well be so. But what kind of a society are we going to have if it consists of highly paid people doing high-value-added work—and masses of unemployed?So we live in an era where a billionaire industrialist understands the crushing effect of deindustrialization on the social structure, yet our "left/liberal" intellectuals tell us to stop worrying and apply for a job as a greeter at Wal-Mart. To me, this is an indication of a more general collapse of the "left" and its isolation both from the last thirty years of economic research and from real-life. Baker and similar are deeply critical of the Obama administration, but their critique is not illuminating nor does it produce progress because the "left" is operating on an intellectual framework that is not capable of addressing the important issues of the day.
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