LABOR ‐ Labor mobility and social wellbeing under international capitalism

Abstract

In his economic writings John Paul II asserts the importance of placing the human person at the center of deliberations concerning the economy. Neoclassical economists show that free trade enhances the efficiency of society. However, a byproduct of free trade is greater competition, as countries and firms adjust to the introduction of new products and processes of production, made possible through technological innovation. Neoclassical economists assume that workers will move to where new jobs develop. In many cases, however, this means that they impose burdens on their family and become more distant from friends. Each human person establishes bonds with other persons; through such family bonds of friendship a person becomes more human. This essay explores the tension between greater productive efficiency and a desire to maintain and enhance friendships. Never merely objective analysts, neoclassical economists have strong convictions concerning dynamic efficiency, while consumers have convictions about friendship. These two sets of convictions have to be reconciled. In order for policy makers to assess the true costs of free trade, mobility measures must be developed, and the neoclassical model must be modified to incorporate geographical stability as a significant factor for consumers.

Citation

Piderit, J.J. (1998), "LABOR ‐ Labor mobility and social wellbeing under international capitalism", International Journal of Social Economics, Vol. 25 No. 11/12, pp. 1684-1698. https://doi.org/10.1108/03068299810233349