Finally, Globalization May Help American Workers

U.S. News: Finally, Globalization May Help American Workers

It's a stunning thought: The United States, long dependent on foreign oil, may actually achieve energy independence over the next two decades. And by 2030 it could become a net exporter of oil. …

… That intriguing possibility has generated most of the headlines, but the IEA report draws attention to another trend that's just as important: A possible reversal of globalization trends that until now have mostly caused a net outflow of jobs from the United States to lower-cost nations, such as China and India. …

… Some economists have been predicting a second phase of globalization, in which foreign labor costs rise and it becomes more cost-effective to produce things in developed nations such as the United States. And now, the booming U.S. energy sector may give that trend a boost.

The IEA report points out that abundant energy in the United States will have at least two secondary effects: It will make the U.S. an energy supplier to the rest of the world. And it will lower costs for U.S. manufacturers, since energy is a key input for factories who run assembly lines.

Energy is already a growing industry that supports perhaps 10 million U.S. jobs, and while the growth of some fields, such as green energy, may sometimes be overstated, it's clear that energy jobs tend to be high-paying ones that can help replace some of the blue-collar jobs that have been lost. …

… ower energy costs will also be a growing competitive advantage for U.S. manufacturers. Some foreign manufacturers—especially those based in Europe—already find it cheaper to build certain things in America, especially products that are sold here. If the gap in energy costs grows, it will only lure more firms across the pond.

Some economists believe a "reshoring" trend is already underway….