Research and Writing 303 - Recently Updated Pages

Research Paper

ericnyork — Wed, 16 Jul 2008 15:18:55 CDT

Title page

normal rules fortitle page

Abstract

separate page (2 or ii)
center "Abstract" on first line of page 2 (no quotation marks, no underline, no bold, etc.)
indent for paragraph
abstract includes, in paragraph form:
- topic
- controversy (if appropriate)
- research question
- subquestions
- conclusion (note: the abstract includes your conclusion: the introduction [below] does not include your conclusion)

Introduction

begins on page 3
paper title centered on first line (do not use "Introduction")
four topic paragraphs, each previewing an important aspect of the paper
a plan of the essay
- research question
- six subtopics or subquestions
  - the first subtopic is introductory: background, context, history, scope of problem, etc.
  - the final subtopic is concluding--your answer to the research question (give this section a subtitle, not "Conclusion")
subtopics/subquestions must be in a logical order that leads to the answer to your research question
use normal sentence capitalization style for subquestions and subtopics
introduction should not answer the research question--do not give your conclusion

Body

the first section of the paper after the Introduction should begin immediately after the list of subtopics. Do not begin the first subtopic on a new page (unless the list of subtopics ends at the bottom of the page)
the first section begins with a subtitle. The subtitle must be the exact phrase or question listed as #1 on the list of subtopics.
do not number subtitles in the research paper
the subtitle should be centered on first line of the page
do not skip an extra line before or after the subtitle
the subtitle must have title capitalization--first word and all significant words begin with caps.
the final section is your conclusion. You must answer your research question. Continue to use sources in your conclusion.
the paper must make serious use of sources. Use a variety of quotations and paraphrasess. As much as possible, weave sources together.
all quotes and paraphrases must be properly cited

References

use correct APA references format
all kinds of sources (books, periodical, web sites, etc.) are listed together in alphabetical order by author's last name, or first word of title is there is no author

Preparing for the conference

complete Conference form
you must bring your sources to the conference
to prepare sources for conference:
- all sources must be in alphabetical order, exactly as they are listed in your References
- all quoted and paraphrased passages in the sources must be marked for rapid access
- if you prefer not to bring your books, you must xerox the page with the passage you quoted or paraphrased, and also xerox the title page of the book

The Home

ericnyork — Wed, 25 Jun 2008 13:43:59 CDT

Click here to see what has changed:

select the topic

ericnyork — Thu, 19 Jun 2008 11:03:32 CDT

SUMMER 2008

DO NOT COMPLETE THIS PAGE

The topic must be related to globalization.
The topic must be approved by me.
Are there enough sources available to research your topic? You must be sure.
Start with a general topic, but for the research paper, you must develop a fairly specific topic. The more detailed your research project is, the better.
Research topics should focus on debatable issues. Describe the debate and take a stand.
After you have read into your topic, and developed a familiarity with the topic, then you will formulate a research question.
If you wish to write about a medical topic, remember that we are not concerned with the symptoms and treatment of specific diseases, but with the policies of countries, international agencies and pharmaceutical companies.
Begin with thethe following exercises:

To find a research topic:

Globalization Links

Globalization 101 Issue Briefs.

You may choose to research a specific country or a specific conflict.

Nigeria
Congo
Sudan
Somalia
Iraq
Iran
Venezuela
Cuba
China
Russia
Any other country or conflict that interests you

Click here when you think you have your topic.

In the computer lab, stop by to chat with the teacher about your topic. Remember, the topic must be approved by me.

Next, prepare a preliminary List of Sources.

Editing Worksheet

PREYAC85 — Wed, 18 Jun 2008 14:19:55 CDT

Print this document and bring it to class with five copies of your essay on globalization and inequality.

The essay should be complete, with title page, running header, and title centered on the first line of page 2.

The essay should have quotations, paraphrases and APA in-text citations and References page.

The essay should not be a first draft. It must be carefully proofread.

Please print and bring the sources to class, or at least the parts you used from the longer sources.

In class, work on one essay at a time. Distribute the copies of the essay to the group. Each student reads, marks and corrects the essay. When every student is finished reading the essay, the group as a whole completes this worksheet. The author of the essay writes down the answers to the worksheet questions. The completed worksheet must be submitted in a folder with one edited draft, the final essay, and the other assignments.

The group should discuss the following questions and offer suggestions for improving the essay. The author of the essay should write the answers and suggestions down on a separate sheet to be submitted with the finished essay.

1. Is the introduction interesting? Does it get your attention and make you want to read the essay? Watch out for excessively general statements and cliches. Make sure the introduction gets quickly to the point.

2. Does the introduction introduce the topic? Briefly describe the debate? Briefly state the main argument of each side in the debate? Include a thesis indicating what side of debate the (student) author is supporting? Is the thesis debatable?

3. Are the different positions in the debate clear? Does the (student) author attribute arguments to "critcs" and "supporters" of globalization?

4. Does the essay include the main arguments of each side in the debate? Does the essay show some of the evidence used to back up the various arguments?

5. Is the essay well organized? Does it have a beginning, middle and end? Does one paragraph seem to lead to the next paragraph? Is the information presented in a logical order?

6. Do the paragraphs begin with a topic sentence which states the idea of the paragraph? Do the sentences in the paragraph support the topic sentence? Do all the sentences in the paragraph pertain to the topic sentence?

7. Does the essay include the right amount of quotation? Make sure there is not too much quotation.

8. Does author quote interesting and striking language to make important points? Do not quote to make obvious points.

9. Are all the paraphrases completely transformed? You must change the sentence structure; you must not just substitute synonyms.

10. In at least a few paragraphs, does the author refer to more than one source? Comparing or contrasting authors in a paragraph improves the essay.

11. Are all quotes and paraphrases correctly introduced and punctuated?

12. Are all the quotations and paraphrases correctly cited?

13. Does the essay come to a clear conclusion? Are the author's conclusions interesting and logical? Does the author support his or her thesis (from the introduction)? Does the author continue to refer to the sources in the conclusion do justify his or her thesis?

Check the Format

Font: 12 pt. Times New Roman

text double spaced

proper margins

Running header--short title, five spaces, page number (title page is page 1)

title page:

proper title capitalization
proper title format (no underline, etc.)
class and section: Research and Writing 303 CD or EF1
professor's name: Professor Mendelsohn
full date: January 1, 2007

APA references page with hanging indents

First Essay
Previous: Rewriting

More Pain Than Gain

PREYAC85 — Mon, 16 Jun 2008 14:54:33 CDT

APA References formart:

More pain than gain. (2006, September 9). Economist. Retrieved from Academic Search Premier database.

"More Pain Than Gain" is a longer essay from the Economist, the British newsweekly. I've broken it into parts; if you prefer, here is the PDF.

"More Pain Than Gain" argues that "many workers are missing out on the rewards of Globalization."

As you read Part 1, answer the following questions:
1. What puzzling fact does the author address at the beginning of the essay?
2. How does the author explain the puzzling fact?
3. "The real threat is to wages, not jobs." Explain in your own words.

4. Explain in your own words the normal, and the current, relationship between wages and productivity.

In Part 2, the essay contrasts the present situation with economic theory. According to "traditional trade theory," free trade should raise the wages of workers. But this does not seem to be happening today. Why not? What reason does the author give for this unexpected phenomenon? Explain the process that leads to stagnant wages for American workers.

In Part 3, the essay rebuts the argument that the solution to stagnant wages is more education so workers can benefit from today's high-tech economy. In your own words, paraphrase the essays' rebuttal of this argument.

In Parts 4 and 5, the essay still supports globalization. Why? What measures does the essay propose to address inequality?

The Income Gap

ericnyork — Mon, 16 Jun 2008 14:33:15 CDT

Format for APA References:

Pethokouskis, J. (2007, January 1). The income gap. U.S. News and World Report. Retrievedfrom Academic Search Premier database.

Is globalization to blame? Only in part

Big financial institutions pay David Smick a lot of money to find out what issues are on the minds of Washington's policymakers.

So what is he telling them now as the Democrats take over both houses of Congress? "Globalization is the sleeper issue for 2008," is the answer given by Smick, a onetime aide to Republican Congressman Jack Kemp.

Indeed, "globalization pushback" is the new talking point on Capitol Hill, among K Street lobbyists, and on newspaper op-ed pages. Democrats have seized on the issues of rising inequality of incomes and jobs lost to overseas outsourcing, targeting globalization as the culprit. James Webb, the newly elected U.S. senator from Virginia, summed up his party's attitude in a November Wall Street Journal piece. "In the age of globalization and outsourcing," Webb wrote, "… the average American worker is seeing a different life and a troubling future." Fellow Senate Democratic newbie Sherrod Brown of Ohio, along with Sen. Byron Dorgan, a North Dakota Democrat, declared in the Washington Post that globalization has caused "downward pressure on income and benefits for American workers."

Smick's "sleeper issue" may have already awakened. When Congress passed the North American Free Trade Agreement in 1993, Senate Democrats were split 28 to 27 against, while House Democrats voted 156 to 102 against. But when the Dominican Republic-Central American Free Trade Agreement came up in 2005, Senate Democrats-including potential 2008 hopefuls Hillary Rodham Clinton and Barack Obama-voted against the bill 33 to 10, while their House counterparts were a lopsided 187 to 15 opposed. And that was before the 2006 midterm election ushered in a legion of new Democrats, including Webb and Brown, noted for their hostility to free trade.

Since the election, House Democrats have voted against normalizing trade relations with Vietnam. And the odds of Congress voting to renew presidential fast-track trade authority look long. No wonder Morgan Stanley economist Stephen Roach-who blames the $800 billion U.S. trade deficit more on Americans' failure to save than China's trading practices-warned his clients last week that "an intensification of protectionist pressures [in Congress] is a distinct possibility … a lose-lose response to … growing frustrations with the win-win rubric of the globalization debate."

The Democrats' turn is a rejection of the position the party held the last time it occupied the White House. "Clearly, Democrats have moved away from the Bill Clinton position on trade toward the Dick Gephardt position," says political analyst Stuart Rothenberg, referring to the former Missouri congressman and would-be president known for favoring trade unions more than trade agreements. Ex-Iowa governor and 2008 White House aspirant Tom Vilsack, who says his trade views combine the best of Gephardt's and Clinton's, says Americans believe the country has "not benefited as much from trade as we should have," and he fears the nation risks "closing the door on trade."

In November, 59 percent of voters who rated the economy as an "extremely important" issue pulled the Democratic lever. Tough talk on trade and outsourcing is where the votes are right now, as the midterm results vividly confirm. Outside the Capital Beltway, "the pushback against globalization is real," says political scientist Daniel Drezner at Tufts University's Fletcher School. A recent Pew Research Center poll found that 44 percent of respondents thought globalization led to lower wages; just 11 percent thought free trade boosted wages. Likewise, 48 percent thought globalization resulted in job losses for Americans; just 12 percent considered it a job creator.

Yet even if globalization pushback is a political idea whose time has come, do the economic facts support it? The consensus view is that there has been a big increase in income inequality, notably at the very top. The portion of earned national income going to the top 1 percent, according to economists Thomas Piketty and Emmanuel Saez, has nearly doubled from the high single-digits three decades ago to 16.2 percent in 2004. Meanwhile, the share going to the top one tenth of 1 percent has more than tripled to 6.9 percent. Include capital gains from stock and bond sales, and the numbers are even more dramatic: The top 1 percent grabs 19.5 percent of income, and the top 0.1 percent snags 9.2 percent.

In essence, the first set of numbers represents wage inequality, while the second-including gains from financial assets-represents broader income inequality. The difference between the numbers gives a big clue to how globalization is affecting wages and income. Saez, an economics professor at the University of California-Berkeley, notes that the first set of numbers has been "relatively stable" since the early 1990s, though gradually moving higher. But if you include capital gains, inequality increased at a brisk clip throughout the 1990s-particularly for the top tenth of 1 percent-until the 2001 recession and bear market.

Talent search. "At the top, what you primarily have is executives at large companies who are paid very large salaries with bonuses and stock options," Saez says. "It has really become a truly global market for the talent of executives." So it's not so much that globalization has driven down wages because the average U.S. worker has to compete with a low-paid competitor in China or India. (About a quarter-million jobs are lost annually to offshoring, which works out to only 0.18 percent of the workforce.) Rather, globalization has increased the demand for top corporate managers, and it has made companies more valuable as it has spurred economic growth and higher stock market values. That has boosted executives' income-from salaries, stock options, and capital gains.

Consider this: The stock market has boomed far in excess of overall economic growth for the past quarter century. So, anyone who derives income from wages alone probably can't keep up with those who have big stock portfolios. Since 1981, U.S. gross domestic product has doubled to $11.4 trillion, while total stock market capitalization has increased 14-fold. The real economy-the one that pays wages-just isn't growing as fast as the financial economy. "Globalization has been a magic wealth machine," says Smick. "But you can't keep up if you are only tied to wages."

Rapid technological change, which itself is driving globalization, is also pushing wage inequality. "Inequality is related to technology, and … you really require more skills to operate in a challenging economy driven by technology," says Daron Acemoglu, an economics professor at MIT. According to the liberal Economic Policy Institute, inflation-adjusted wages for male high school graduates have slipped 6 percent since 1980, while rising 20 percent for college graduates and 35 percent for those with an advanced degree. Technology places a premium not only on computer skills but on the managerial and organizational abilities needed to run a modern, networked company. The continuous pace of technological change means that as one new invention enters the market, Columbia University economist Jagdish Bhagwati says, workers can barely adjust before another arrives. Better education means quicker adaptation-and higher incomes.

Then there's the claim that workers' wages have been flat since the 1970s. According to the Labor Department, average hourly earnings, adjusted for inflation, have been flat overall since 1977. But there are two problems with this commonly heard statistic. For starters, there's a strong case to be made that government inflation statistics overstate rising prices by about a percentage point, failing to take into account the rising quality of goods and the ability of consumers to shift to Wal-Mart when prices go up at their local supermarket. If true, earnings have actually risen by 35 percent or so. Second, the Labor Department numbers do a poor job at tracking the earnings of "knowledge workers," notes economist Edward Yardeni, and are scheduled to be phased out in a few years and replaced with a more comprehensive measure. Better to look at overall compensation, including benefits such as healthcare coverage and 401(k) matches. Compensation has been rising at a far faster pace than wages in recent years.

Bashing. How will Democrats choose to deal with income inequality, wage stagnation, and-just as important-the less-noticed rise in income volatility? (Big swings in family incomes have tripled since the '70s, according to Yale University political scientist Jacob Hacker.) Jason Furman, director of the Hamilton Project, a centrist economic group, thinks there will be plenty of China-bashing rhetoric and talk of trade barriers-like one proposal to slap a 27.5 percent tariff on Chinese goods because of the weak yuan--over the next few years, not to mention a pause in new trade agreements. But in the end, he speculates, Democrats will mostly push for greater social insurance, such as vastly increased unemployment benefits. "Social insurance," he says, "can lead to a more dynamic society by letting people feel more comfortable taking risks."

Sen. Max Baucus, a Montana Democrat who is the new chair of the Finance Committee, advocates "global adjustment assistance," expanding wage and health benefits to workers displaced by all aspects of globalization, not just trade agreements. While emphasizing that future trade agreements must have better environmental and labor provisions, Baucus says it's important that Americans remember that trade "creates opportunities for economic growth and encourages innovation." (It has been estimated that global integration has added $1 trillion to the U.S. economy.) He guesses that the 2008 Democratic presidential nominee will sound a lot more like him than Brown or Webb. As for the protectionist measures that Wall Street worries so much about, Smick thinks there will be more talk than action, "unless we get a recession-then all bets are off."

References

ericnyork — Mon, 16 Jun 2008 14:07:50 CDT

The last page of the paper is the References page.

Continue the running header on the References page.

On the first line, center the word “References”. No bold, underline, etc.

Use a hanging indent for each entry. In Word: Format/Paragraph/Special/Hanging

Web site

Mishel, L., Bernstein, J., & Allegretto, S. (2006). The state of working America 2006/2007. Economic Policy Institute. Retrieved from http://www.stateofworkingamerica.org/swa06-ch05-wealth.pdf

Cowen, T. (2007, January 25) Incomes and inequality: What the numbers don't tell us. New York Times. Retrieved from http://www.nytimes.com

No author

Wealth flows to the wealthiest as the percentage of Americans who own stocks falls. (2006). Economic Policy Institute. Retrieved from http://www.epinet.org/newsroom/releases/2006/08/SWApr-wealth-200608-final.pdf

Articles from databases

Pethokoukis, J. (2007). The income gap. U.S. News & World Report, 142(3 ). Retrieved from Academic Search Premier database.

The number in italics following the name of the periodical (142) is the volume number. It must be in italics. The number following in parentheses is the issue number. It is not in italics. If there are no volume or issue numbers, omit them.

Note: The retrieved statement for databases ends in a period. The retrieved statement for internet articles does not end with a period.

Exercise: Correct the mistakes. This exercise should be submitted in your first essay folder.

Morici, Peter. (2007). Globalization and Inequality Global politician. Retrieved 03/04/2007 from www.globalpolitician.com/23184-globalization.

Harris.( P 2007) Is the Us Heading for "Developing Nations" inequality levels? Alternet. Retrieved January 28, from htp://www.alternet.org/rights/57727/

David Brooks. (July 24, 2002) A reality-based economy. New York Times. Retrieved from http://nytimes.com

First Essay
Previous: Conclusion
Next: Rewriting

More Pain Than Gain, Part 3

PREYAC85 — Sun, 15 Jun 2008 17:32:02 CDT

It is no longer just dirty blue-collar jobs in manufacturing that are being sucked offshore but also white-collar service jobs, which used to be considered safe from foreign competition. Telecoms charges have tumbled, allowing workers in far-flung locations to be connected cheaply to customers in the developed world.

This has made it possible to offshore services that were once non-tradable. Morgan Stanley's Mr Roach has been drawing attention to the fact that the "global labour arbitrage" is moving rapidly to the better kinds of jobs. It is no longer just basic data processing and call centres that are being outsourced to low-wage countries, but also software programming, medical diagnostics, engineering design, law, accounting, finance and business consulting. These can now be delivered electronically from anywhere in the world, exposing skilled white-collar workers to greater competition.

The standard retort to such arguments is that outsourcing abroad is too small to matter much. So far fewer than 1m American service-sector jobs have been lost to offshoring. Forrester Research forecasts that by 2015 a total of 3.4m jobs in services will have moved abroad, but that is tiny compared with the 30m jobs destroyed and created in America every year. The trouble is that such studies allow only for the sorts of jobs that are already being offshored, when in reality the proportion of jobs that can be moved will rise as IT advances and education improves in emerging economies.

Alan Blinder, an economist at Princeton University, believes that most economists are underestimating the disruptive effects of offshoring, and that in future two to three times as many service jobs will be susceptible to offshoring as in manufacturing. This would imply that at least 30% of all jobs might be at risk. In practice the number of jobs offshored to China or India is likely to remain fairly modest. Even so, the mere threat that they could be shifted will depress wages.

Moreover, says Mr Blinder, education offers no protection. Highly skilled accountants, radiologists or computer programmers now have to compete with electronically delivered competition from abroad, whereas humble taxi drivers, janitors and crane operators remain safe from offshoring. This may help to explain why the real median wage of American graduates has fallen by 6% since 2000, a bigger decline than in average wages.

In the 1980s and early 1990s, the pay gap between low-paid, low-skilled workers and high-paid, high-skilled workers widened significantly. But since then, according to a study by David Autor, Lawrence Katz and Melissa Kearney, in America, Britain and Germany workers at the bottom as well as at the top have done better than those in the middle-income group. Office cleaning cannot be done by workers in India. It is the easily standardised skilled jobs in the middle, such as accounting, that are now being squeezed hardest. A study by Bradford Jensen and Lori Kletzer, at the Institute for International Economics in Washington, DC, confirms that workers in tradable services that are exposed to foreign competition tend to be more skilled than workers in non-tradable services and tradable manufacturing industries.

List of sources

ericnyork — Mon, 09 Jun 2008 10:10:57 CDT

Required:

3 books
3 magazine articles
3 scholarly articles
3 web sites
6 news articles

These sources must be properly formatted as an APA References page to receive credit for this assignment.

Books

CUNY+

Click on "Search Individual CUNY Libraries" to search the York library.

Click on "Select all CUNY Libraries" to search the entire system.

Speak to the York College librarians for interlibrary loans.

Also: Queens Public Library and New York Public library.

Also: Google Books. Check "Full view books."

CUNY Library

Magazine articles

You must have three articles from popular magazines, like Time, Newsweek, Business Week, the Economist, the New Yorker, USNews, the Nation, the New Republic, etc.

These magazines all have web sites; check them for articles.

Mostly you will use the Academic Search Premier and Lexis Nexis databases for magazine articles.

Go to Electronic Databases. (You can access these databases from home using the number above the bar code on your York id.)

Academic Search Premier

Check "Full Text"
For "Publication Type," choose "Periodical"
Enter search terms
Search
At the top of the results list, you can choose between "Academic Journals" and "Magazines." Choose "Magazines" for magazine articles.

Lexis Nexis

Select "Major U.S. and World Publications "

After search, select Magazines and Journals from list at left.

Scholarly articles

Scholarly articles are available from the Electronic Databases--especially JStor and Project Muse.

Also try Academic Search Premier

Check "Full Text"
For "Publication Type," choose "Periodical"
Enter search terms and search.
At the top of the results list, you can choose between "Academic Journals" and "Magazines." Choose "Academic Journals" for scholarly articles.

Also: Eldis

Also: Try Google Scholar. Although most articles are not available for free, many are.

Web sites

You must have at least three web sites.

News sites

You must have at least one relevant article from each of the following:

abcnews.com
bbc.com
cnn.com
foxnews.com
msnbc.com
New York Times (you can get this article from a database)

Preparing sources to show me

Print all articles. Xerox the title pages of your books.

Prepare an APA References list, based on the following:

APA References

book:

Jones, R. (1983). Globalization and the poor: A survey. New York: Harpers.

article from database:

Ortega, D. (2004). International aid and development. Economy and Society,18(4), 180-195. Retrieved from Lexis Nexis database.

The first number following the name of the periodical is the volume number; the number in parentheses is the issue number. Use these if they are available.

Note: period after retrieved statement

web site:

Singh, T., & Brower, J. (2006). Debt and power. GlobalIssues.org. Retrieved from http://www.globalissues.org/articles/debt.htm

Note: no period after retrieved statement

Note: for news site, use the home page address in the retrieved statement.

stand-alone internet document without web site:

Linn, K. (2001) Report on international development. Retrieved from http://ucla.edu/students/papers/inter/lk.htm

If there is no author, begin with title, then date, etc.

If there is no date, use: (n.d.)

For others, see APA Manual

First Essay

ericnyork — Sun, 08 Jun 2008 14:50:08 CDT

The first essay concerns the debate over globalization and inequality . Some authors argue that globalization causes inequality. Others argue that globalization reduces inequality, or is not the primary cause of inequality.

You must describe the debate and defend your thesis--your opinion.

The paper is 3-4 pages, includes a properly formatted title page, and uses APA citation and References.

In this essay, you will:

describe the debate over globalization and inequality
summarize the position that globalization does not cause inequality
summarize the position that globalization causes inequality
state the main arguments for the position that globalization does not cause inequality
state the main arguments for the position that globalization causes inequality
decide between (2) and (3)
present evidence that helps you decide between (2) or (3)

This essay is based on the these sources. You may use additional sources.

As you read this material, you will see short exercises related to the essay assignment. The first one is below, on this page.

The following exercises should be completed online:

grade student essays
main points of "Incomes and Inequality"
definitions of argument, claim/thesis, evidence, counterargument
conservative vs. liberal
thesis statements

The following exeercises should be submitted in the first essay folder:

paraphrase
paraphrase and quotation of two passages
correct References mistakes
editing for wordiness

Globalization links

Sources for first essay

First Essay Sequence

Exercise

Read student essays:

One
Two
Three

Grade each essay A or B or C; explain your grade in a few sentences.

Next: Reading sources

Rewriting

ericnyork — Sun, 08 Jun 2008 14:41:07 CDT

When you rewrite, strive to omit unnecessary words and ideas.

Example #1:

There have been many debates over the topic of globalization. World leaders, businessmen, politicians, and corporation from all over the world have all provided valid reasons as to how globalization has provided opportunities for people and growth for the economy. On the other hand, others have strongly expressed disagreement, suggesting that the economy is the only beneficiary making gains yet the people who are working to help with the progress such as the workers are not being fairly compensated. This issue has caused a fire storm of controversy and people increasingly are expressing their own ideas to prove that globalization truly as its own benefits or drawbacks.

My suggestions:

There have been many debates over the topic of globalization.

I would omit this sentence, as it is very obvious and doesn't tell us anything we don't know.

World leaders, businessmen, politicians, and corporation from all over the world have all provided valid reasons as to how globalization has provided opportunities for people and growth for the economy.

This sentence is better than the first because it provides reasons for defending globalization, but it is wordy.

On the other hand, others have strongly expressed disagreement, suggesting that the economy is the only beneficiary making gains yet the people who are working to help with the progress such as the workers are not being fairly compensated.

This sentence attempts to state a reason for criticizing globalization, but the sentence is unclear--I don't understand "the economy is the only beneficiary making gains." I would rewrite this sentence as: "Others have strongly disagreed, suggesting that workers are not being fairly compensated."

This issue has caused a fire storm of controversy and people increasingly are expressing their own ideas to prove that globalization truly as its own benefits or drawbacks.

Again, I would omit this sentence as unnecessary. Now I would have to write two or three more sentences to complete the paragraph.

Example #2

Globalization has brought into sharper focus the disparities among nations. It has also highlighted the resulting problems of many developing countries in their effort to catch up with the developed nations. Rapid increase in the standard of living and in the accumulation of wealth, especially in the developing countries, serves to highlight the benefits of globalization but the problems which are related to this rapid growth are as equally conspicuous. While globalization has brought prosperity to citizens of both developed and developing countries, it seems to favor the wealthiest sections in these societies. It is worthwhile to examine whether or not globalization is causing greater inequalities than what existed before. If globalization continues in its present from, then it seems that its effects will lead to greater inequalities among and within nations.

My suggestions:

I would combine the first two sentences:

Globalization has brought into sharper focus the disparities among nations and highlighted the problems of many developing countries in catching up with the developed nations.

Rapid increase in the standard of living and in the accumulation of wealth, especially in the developing countries, serves to highlight the benefits of globalization but the problems which are related to this rapid growth are as equally conspicuous.

This sentence is very hard to understand and seems to repeat the first two sentences. I would omit it.

While globalization has brought prosperity to citizens of both developed and developing countries, it seems to favor the wealthiest sections in these societies.

Okay.

It is worthwhile to examine whether or not globalization is causing greater inequalities than what existed before.

Omit. Unnecessary.

If globalization continues in its present from, then it seems that its effects will lead to greater inequalities among and within nations.

Not bad.

My final rewrite:

Globalization has brought into sharper focus the disparities among nations and highlighted the problems of many developing countries in catching up to the developed nations. While globalization has brought prosperity to citizens of both developed and developing countries, it seems to favor the wealthiest in these societies. If globalization continues in its present from, it will lead to greater inequalities among and within nations.

Read the "Elementary Principles of Composition"

Exercise: Edit the following passage to omit needless words. This exercise should be submitted in the first essay folder.

There are at least two very different schools of thought on the issue of income inequality. All of the members of the first of the two schools — this includes populist politicians and a few economists — say that they think the key issue is of economic power. The haves exercise more power over the have-nots. And you can see that as a result of them exercising more power, corporate profits take off and soar, while on the other hand wages just stagnate. Money-drenched, rich politicians push through shareholder-friendly trade deals that benefit shareholders and outsource American jobs while at the same time job insecurity skyrockets to the sky. C.E.O.’s get absurd salaries while the other 99 percent of earners can only enjoy a few benefits if they are lucky from productivity gains. So in the end the unions are weakened while manufacturing wages tumble and then the middle class suffers.

In short, populists give the argument, the market is a broken market. The rules are not fair because they are rigged. The reigning ideology that rules in Washington must be upended. Unions are in need of being revived. Globalization needs to be organized again.

The big problem with this narrative is that it doesn’t really fit the facts. First, if you look at it, workers over all are not getting a smaller slice of the pie of wages and benefits. Wages and benefits have made up roughly the same share of G.D.P. going back for 50 years. And then second there is the fact that offshore outsourcing is not at all decimating employment. It is true according to the Bureau of Labor Statistics, outsourcing is itself responsible for only 1.9 percent of the layoffs out there, and the efficiencies it produces create more jobs and jobs at better wages than the ones destroyed by the outsourcing, which means sending jobs overseas, like to China.

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Paraphrase with Quotation

ericnyork — Sat, 07 Jun 2008 17:42:23 CDT

In many cases, you will combine paraphrase and quotation. Here are some examples.

Here, the quotation is set off by a colon following explanatory information:

A confidante of Republican powerbroker James Baker made the following comment to the Washington Monthly on the considerations that had led Baker to agree to head the ISG: “Baker is primarily motivated by his desire to avoid a war at home—that things will fall apart not on the battlefield but at home. So he wants a ceasefire in American politics.”

Here, the author first paraphrases the Los Angeles Times, and then quotes the Times.

This militarist response is another indication of the declining US influence in Africa and globally. The Los Angeles Times pointed out that the US had been increasing aid to Africa. “So far, however, the Chinese approach, focusing on economic cooperation, appears to be gaining ground. Bush has not visited Africa since his first term. By contrast, top Chinese officials have relayed across the continent every few months, winning points with no-strings-attached promises of economic support,” the article commented.

Note the signal phrase. “the article commented.”

The next starts with a quote, followed by the author’s characterization of Sweig’s writing.

"The dramas that contained the seeds of today's rebellion played out in obscurity, as yet imperceptible to the naked American eye," Sweig writes in the course of her sweeping and pungent review of abrasive American foreign policies.

The next two are paraphrases.

Kuznets did not feel the same about the rise as he did about the fall of inequality. That inequality tended to decline at some advanced stage of development, he seemed quite confident. . . .He emphasized the role of sectoral shifts as an engine of inequality, and mused more vaguely about the possible importance of the demographic transition.

Similarly, interest groups in developed nations benefit from favorable treatment by their governments, but these favors victimize people in developing nations who are trying to compete. It is bad enough, Stiglitz says, that thousands of wealthy American cotton farmers get billions of dollars in government subsidies; it is even worse that this depresses the world price of cotton, further impoverishing millions of African cotton farmers.

The next sentence quotes Sweig, and then backs her up with paraphrased evidence from the Pew Research Center, connecting two sources:

There's no proving Sweig's contention that Bush's "policies and nonpolicies . . . stripped bare the latent structural anti-American animus that had accumulated over time," but Kohut's Pew Research Center polls show that global opinion of the United States has plummeted under Bush — not just since its unnatural post-9/11 high, but since he took office.

The next quotes Brooks, then criticizes him.

Brooks claims that this reduction in poverty "supports the argument that we are seeing a drop in global inequality" and goes on to make the oversimplified, unqualified and unwarranted (by the data cited) argument that globalization "explains all this good news."

The next asks a question, and then, to answer the question, quotes World Bank data.

Is growth in fact shared "up and down the income ladder" under globalization? According to Korzeniewicz and Moran's analysis of World Bank data, "The share of world income accruing to the poorest 40% of the world's population diminished over the 1965-1990 period from 5.1% to 3.2%."

As you discuss the debate over globalization and inequality, try not to base your paragraphs on only one source. It is better to include two or three sources in each paragraph, showing how the authors make similar or complementary arguments, or to show how authors dispute one another.

Exercise: Write one paragraph based on the following two passages. Using a combination of paraphrase and quotation, contrast the authors's views. Do not worry about in-text citations for this exercise. This exercise should be submitted in the first essay folder.

The Payoff from Globalization
Gary Clyde Hufbauer, Peterson Institute
and Paul L. E. Grieco, Peterson Institute
Op-ed in the Washington Post
June 7, 2005

The battle over the Central American Free Trade Agreement (CAFTA) recalls some familiar themes. The “modern” debate over trade barriers can be traced to the 19th century. Then as now, the debate has been dominated by special interests (land barons vs. merchants in the 19th century; the AFL-CIO vs. the Chamber of Commerce today). There is no question that trade liberalization creates winners and losers. Affected citizens and companies have every right to plead their case.

But Congress should consider how freer trade affects the nation as a whole. Since World War II the United States has led the international quest to liberalize world trade and investment. With leadership from the White House, Congress has slashed the simple average tariff rate from 40 percent in 1946 to 4 percent today, and other industrial nations have done much the same. After a half-century of steady liberalization it is fair to ask, what do Americans have to show?

As it turns out, quite a lot. Using four different methods, we estimate that the combination of shrinking distances—thanks to container ships, telecommunications and other new technologies—and lower political barriers to international trade and investment have generated an increase in US income of roughly $1 trillion a year (measured in 2003 dollars), or about 10 percent of gross domestic product. This translates to a gain in annual income of about $10,000 per household. Unfortunately for the cause of continued liberalization, Americans do not receive this money as a check marked “payoff from globalization.” Instead, the payoff is hidden within familiar channels: fatter paychecks, lower prices and better product choices (compare the telephones available now with the standard black model of 1980).

Globalization and Inequality
Peter Morici
July31, 2007

For free trade to work, nations must be able to export what they make more efficiently than their trading partners. By swapping jobs in importing-competing industries for those in export activities, the United States increases productivity for those workers by about 10 percent. Hence, by exporting some $1.5 trillion annually and using the proceeds to buy imports, trade raises U.S. GDP about $150 billion.

Unfortunately, the United States has not been conducting trade quite that way. Since George Bush took office, annual imports have climbed $834 billion but exports are up only $441 billion. The trade deficit has swelled to $750 billion.

Instead of redeploying displaced autoworkers to computer chip factories, those workers find jobs in restaurants or hotels, where productivity and wages are lower. That reduces GDP by about $250 billion, and wipes out the $150 billion gains from trade noted above.

Despite remarkable improvements in productivity, many American workers face stagnant wages or can't keep up with inflation. Too many are forced by trade out of jobs offering good pay and benefits.

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Paraphrase

ericnyork — Sat, 07 Jun 2008 17:39:49 CDT

In the body of the essay, you must incorporate material from your sources. You will either paraphrase or quote your sources.

When you paraphrase, you must put the source material into your own words. It is not enough to change a few of the author's words. Instead, you must radically change the original sentence structures, while keeping the author's idea intact.

Read "Successful vs. unsuccessful paraphrases" and "How to paraphrase a source" and "Paraphrase: Write it in Your Own Words".

Then complete this exercise. The answers should be printed out and submitted in the first essay folder.

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Introduction

ericnyork — Sat, 07 Jun 2008 17:37:58 CDT

In your essay, you should:

describe the debate over globalization and inequality
summarize the main arguments of each side in the debate
state your position in the debate
support your position

An essay has an introduction, body and conclusion.

Usually your introduction will draw the reader’s attention to your topic, reveal your intention in writing the essay, and state your conclusion.

Examples

1. In this brief introductory paragraph, the author uses recent events--"The war on terrorism -- and the rupture in the Western alliance produced by the Iraqi war"-- to introduce the ongoing debate between advocates of globalization and “extreme critics of globalization”:

The war on terrorism -- and the rupture in the Western alliance produced by the Iraqi war -- might sharply slow down the international movement of capital and people for an extended period. This will please the more extreme critics of globalization and immigration, but it will greatly reduce the opportunities for poor nations to grow out of poverty.

Her thesis is that globalization provides “opportunities for poor nations to grow out of poverty.”

In her essay, she will:

give examples of countries that grew out of poverty thanks to globalization
explain how globalization helps poor countries reduce poverty
argue that the “more extreme critics of globalization and immigration” are wrong

2. This next author argues that development experts are ignoring the “global distribution of income.” She finds this strange, because evidence of growing income equality would support the pro-globalization position and would settle a “long-standing disagreement in economic theory.” Some experts assume that inequality is decreasing, while others do not care about inequality, as long as poverty is decreasing.

Anybody interested in the wealth and poverty of nations must be interested in what is happening to the global distribution of income, one would suppose. A lot turns on the question. If the world's income distribution has become more equal in the past few decades, this would be powerful evidence that globalisation works to the benefit of all. It would give developing countries good reason to integrate their economies closely into the world economy, as the IMF and the World Bank--and their mostly rich-country shareholders--urge them to do. It would answer some of the fears of the anti-globalisation protesters. And it would help to settle a crucial and long-standing disagreement in economic theory, between the orthodox view that economic growth naturally delivers "convergence" of rich and poor countries, and alternative theories which, for one reason or another, say the opposite.

Despite its importance, this issue has received rather little attention within the fields of development studies, international relations and (until very recently) international economics. Neither the World Bank nor the IMF has devoted significant resources to studying it. Many analysts apparently take it for granted that global inequality is falling. Others think it sufficient to focus on poverty, and ignore inequality as such. Both these views need to be challenged. New evidence suggests that global inequality is worsening rapidly. There are good reasons to worry about that trend, quite apart from what it implies about the extent of world poverty.

Her thesis is that inequality is growing and that its growth is worrisome, even if poverty is decreasing.

3. In the following introduction, the author refers to the debate between the “anti-globalists”and the “globalists." The “anti-globalists,” he says, fail to distinguish between the benign and the dangerous aspects of globalization. They blame free trade for problems caused by such things as “short-term capital flows.” His thesis is that “the freeing of trade is largely benign.”

“Globalization" has become today's buzz word. It has also become a battle ground for two radically opposed groups. There are the "anti-globalists" who fear globalization and stress only its downside, seeking therefore powerful interventions aimed at taming, if not (unwittingly) crippling it. Then there are the "globalists" (a class to which I belong) who celebrate globalization instead, emphasize its upside, while seeking only to ensure that its few rough edges be handled through appropriate policies that serve to make globalization yet more attractive.

Many anti-globalists consider the central problem of globalization to be its amorality, or even its immorality. But these critics have too blanket an approach to globalization. The word covers a variety of phenomena that characterize an integrating world economy: trade, short-term capital flows, direct foreign investment, immigration, cultural convergence et al. The sins of one of the above cannot be visited upon the virtues of another. Some are benign even when largely unregulated whereas others can be fatal if left wholly to the marketplace.

In particular, the freeing of trade is largely benign: if I exchange some of my toothpaste for some of your toothbrushes, we will both be better off than if we did not trade at all.

4. Student essay

In this introduction, he gives a good summary of each side in the debate and takes a stand on the issue. In his essay, he provides more details about their arguments, and then explains his position, citing information from his sources.

The environmental effects of globalization involve international organizations, countries, and multinational corporations in an ongoing system of negotiations, lawsuits, and discussions on a global scale. Some argue that globalization helps the environment in the long term because as countries acquire wealth, they can buy technology to clean up the pollution caused by the onset of industry. Others feel that most of the wealth from industry goes to large transnational corporations which have little interest in investing in environmental projects. Indeed, global corporations have a poor track record on the environment. So globalization does have a negative impact on the environment in poor countries.

Read the "Handout on Introductions."

Read the "Handout on Thesis Statements."

Exercise: According to the handout, a thesis statement "makes a claim that others might dispute." Which of the following could be a thesis statement?

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Conservative and Liberal

ericnyork — Sat, 07 Jun 2008 17:31:27 CDT

Palmer's arguments are typical conservative arguments; he is associated with the Cato Institute, a conservative think tank. In contrast, the Economic Policy Institute is a liberal think tank.

You can see from Palmer's article that most conservatives strongly believe in the free market. They feel that the economy should be as little regulated as possible, that the economy works best for everybody when the government does not interfere and does not attempt to redistribute wealth.

In contrast, liberals believe in some government regulation and some redistribution of wealth. Liberals feel that an unregulated economy creates inequality, as too much income and wealth accrue to the wealthy, and not enough to the rest of the population. Thus liberals usually support higher taxes on the wealthy and social programs for the middle class and poor, in contrast to conservatives, who advocate cutting taxes and eliminating or reducing social programs.

In general, both liberals and conservatives support globalization, but liberals are more likely to believe that unregulated trade will tend to favor the rich countries and rich individuals, whereas conservatives like Palmer insist that free trade helps everybody.

Read Conservative vs. Liberal Beliefs

Exercise: Read these passages, and decide if the author is a conservative or a liberal.

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Types of Sources

ericnyork — Sat, 07 Jun 2008 17:20:04 CDT

The articles on child labor in India, war in the Congo, Mexican immigration, etc., were news articles. News articles supposedly do not have a point of view; they should be objective.

In contrast, the articles for the first essay participate in the debate over globalization. Some authors argue that globalization is harmful, some that it is beneficial. Some authors claim globalization alleviates inequality; others claim the opposite. Some authors think offshoring destroys jobs, others that offshoring creates jobs.

All these articles have a thesis, the main assertion the author defends.

Examples of theses:

Income inequality is caused by changing technology, not by globalization.
Trade rules should be changed to provide a more equitable distribution of income.
Globalization causes income inequality.
Congress must end tax subsidies for companies that offshore American jobs.

Authors use arguments to support their thesis.

In Globalization Is Grrrreat!, for example, Tom G. Palmer begins with a question:

It’s common for opponents of globalization to use the term as a catchall for all the features of human life that they don’t like. I’ll use “globalization” more precisely to refer to the diminution or elimination of state-enforced restrictions on exchanges across borders and the increasingly integrated and complex global system of production and exchange that has emerged as a result. The pressing questions are what the effects of globalization actually are and whether they’re beneficial or harmful.

Palmer divides his arguments into the "Myths About Globalization" and "Benefits of Globalization." In "Myths About Globalization," Palmer refutes the arguments of the opponents of globalization.

For example, opponents of globalization argue that globalization eliminates jobs, but Palmer claims that trade policy--an aspect of globalization--does not change the number of jobs, but only changes the kinds of jobs. The opponents of globalization are wrong.

Once Palmer has refuted his opponents's arguments, he lists the "Benefits of Globalization." By refuting the arguments of his opponents, and making arguments in favor of free trade, Palmer answers his question: Globalization is more beneficial than harmful.

Read the Handout on Argument. In your own words, briefly define the following terms:

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Statistics

ericnyork — Sat, 07 Jun 2008 17:15:25 CDT

The main points from the news release from the Economic Policy Institute, "Wealth Flows to the Wealthiest as the Percentage of Americans Who Own Stock Falls" --

the wealthy got wealthier
home ownership increased
stock ownership became more concentrated among the wealthy
household debt grew
economic differences between the races persisted
many Americans are financially unprepared for retirement.

--are backed up by statistics, many of which compare the present to the recent past in order to show an increase in inequality.

If you use these statistics, you must attribute them to the Economic Policy Institute (because other economists use different, often contradictory, statistics). For example:

According to the Economic Policy Institute (2006), "In 2004, the median wealth of black households was just one-tenth that of white households, $11,800, compared to $118,300" (para. 12).

In general, you should use such statistics

to show why some economists believe globalization increases inequality
to describe a tendency toward inequality in the American economy
to support your position on globalization and inequality.

Such statistics also can be

contrasted with other statistics
criticized as inaccurate or misleading
defended from criticism

Read the following excerpts from the Handout on Statistics from The Writing Center at the University of North Carolina at Chapel Hill:

Many writers lack a firm grasp of the statistics they are using. The average reader does not know how to properly evaluate and interpret the statistics he or she reads. The main reason behind the poor use of statistics is a lack of understanding about what statistics can and cannot do. Many people think that statistics can speak for themselves. But numbers are as ambiguous as words and need just as much explanation.

In many ways, this problem is quite similar to that experienced with direct quotes. Too often, quotes are expected to do all the work; are treated as part of the argument, rather than a piece of evidence requiring interpretation (see our handout on how to quote.) But if you leave the interpretation up to the reader, who knows what sort of off-the-wall interpretations may result? The only way to avoid this danger is to supply the interpretation yourself.

Reading statistics

As stated before, numbers are powerful. This is one of the reasons why statistics can be such persuasive pieces of evidence. However, this same power can also make numbers and statistics intimidating. That is, we too often accept them as gospel, without ever questioning their veracity or appropriateness.

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Reading Sources

ericnyork — Sat, 07 Jun 2008 17:09:01 CDT

When reading complex material, take notes and keep lists. Always note the author and title of the source. Put quotations in quotation marks, so that you do not plagiarize.

You should list the main points of the article or essay. For example, the news release from the Economic Policy Institute, "Wealth Flows to the Wealthiest as the Percentage of Americans Who Own Stock Falls" has statistics about the concentration of wealth in America which you can use in your essay. The main points are easily listed:

the wealthy got wealthier
home ownership increased
stock ownership became more concentrated among the wealthy
household debt grew
economic differences between the races persisted
many Americans are financially unprepared for retirement.

A list of the main points allows you to present an author's arguments, and to compare one author to another.

Read "Reading To Write"

Exercise: Read "Incomes and Inequality" and fill out the form following the article.

First Essay
Next: Statistics

Incomes and Inequality

ericnyork — Sat, 07 Jun 2008 17:07:51 CDT

Cowen, T. (2007, January 25). Incomes and inequality: What the numbers don't tell us. New York Times. Retrieved from http://nytimes.com

The growing inequality in wealth and income has led many people to question whether the contemporary American economy is rigged in favor of the rich. While there is little doubt that the gap between the wealthy and everybody else has widened in recent years, the situation is not as unfair as some of the numbers seem to imply.

Much of the measured growth in income inequality has resulted from natural demographic trends. In general, there is more income inequality among older populations than among younger populations, if only because older people have had more time to experience rising or falling fortunes.

Furthermore, more-educated groups show greater income inequality than less-educated groups. Uneducated people are more likely to be clustered in a tight range of relatively low incomes. But the educated will include a greater range of highly motivated breadwinners and relaxed bohemians, and a greater range of winning and losing investors. A result is a greater variety of incomes. Since the United States is growing older and also more educated, income inequality will naturally rise.

Thomas Lemieux, professor of economics at the University of British Columbia, estimates that these demographic effects account for about three-quarters of the observed rise in income inequality for men and 69 to 95 percent of the observed rise in income inequality for women (''Increasing Residual Wage Inequality: Composition Effects, Noisy Data, or Rising Demand for Skill?'' The American Economic Review, June 2006). In other words, rising income inequality is not just a result of unfairness or bad public policy.

Alan Reynolds, senior fellow at the Cato Institute, goes further in his recent book ''Income and Wealth.'' Mr. Reynolds argues that many measures of income inequality do not adequately account for government aid to lower-income groups.

Furthermore, he says, the rich appear to be getting so much richer because of the tax-induced shifting of income from the corporate sector to the personal sector in the wake of the 1980s tax changes.

He describes the observed rise in income inequality as a statistical illusion. The consensus of professional economists is that Mr. Reynolds goes too far. The long-term trend of rising income inequality is evident in many different studies, including those of executive compensation, even if some estimates are exaggerated.

In any case, as Mr. Reynolds and others point out, income is not the only -- or even the most -- important measure of inequality. For instance, inequality of consumption -- the difference between what the poor consume and what the rich consume -- does not show a significant upward trend (Dirk Krueger and Fabrizio Perri, ''Does Income Inequality Lead to Consumption Inequality?'' The Review of Economic Studies, January 2006). Consumption, of course, is not an ideal indicator of well-being; a high or steady level of purchases may reflect growing debt, and the ease of buying a big-screen TV does not reflect a comparable ease in buying good health care.

Happiness, possibly the most relevant variable for a study of inequality, is also the hardest to measure. Nonetheless, inequality of happiness is usually less marked than inequality of income, at least in wealthy societies. A man earning $500,000 a year is not usually 10 times as happy as a man earning $50,000 a year. The $50,000 earner still enjoys most of the conveniences of the modern world. Even if more money makes people happier, it appears to do so at a declining rate, which places a natural check on the inequality of happiness. Studies of personal happiness, based on questionnaires and self-reporting, indicate that the inequality of happiness is not growing over time in the United States. Furthermore, the United States has an inequality of happiness roughly comparable to that of Sweden or Denmark, two nations with strongly egalitarian reputations. (See the symposium in Journal of Happiness Studies, December 2005.) American society offers good opportunities for people to be happy, even if not everyone becomes rich.

If we look at leisure, from 1965 to 2003, less-educated groups experienced a bigger boost in free time than more-educated groups (Mark Aguiar and Erik Hurst, ''Measuring Trends in Leisure: The Allocation of Time Over Five Decades,'' Federal Reserve Bank of Boston Working Paper). In other words, the high earners are working hard for their money and perhaps they are having less fun.

So matters are not as bad as the critics have suggested. The dollars in our bank accounts are one measure of societal value, and it hardly seems fair that the very wealthy should receive more and more. But for the rest of us, life on the ground is not so terrible. Income and wealth inequality measures, taken alone, provide a misleadingly pessimistic picture.

The broader philosophical question is why we should worry about inequality -- of any kind -- much at all. Life is not a race against fellow human beings, and we should discourage people from treating it as such. Many of the rich have made the mistake of viewing their lives as a of relative status. So why should economists promote this same zero-sum worldview?

Yes, there are corporate scandals, but it remains the case that most American wealth today is produced rather than taken from other people.

What matters most is how well people are doing in absolute terms. We should continue to improve opportunities for lower-income people, but inequality as a major and chronic American problem has been overstated.

Tyler Cowen is a professor of economics at George Mason University and co-author of a blog at www.marginalrevolution.com.

The Populist Myths on Income Inequality

ericnyork — Thu, 05 Jun 2008 10:11:56 CDT

Brooks, D. (2006, September 7). The populist myths on income inequality. New York Times. Retrieved from http://nytimes.com

There are two schools of thought on income inequality. Members of the first school — populist politicians and a few economists — say the key issue is economic power. The haves exercise more power over the have-nots. As a result, corporate profits soar, while wages stagnate. Money-drenched politicians push through shareholder-friendly trade deals that outsource American jobs while job insecurity skyrockets. C.E.O.’s get absurd salaries while the 99 percent of earners enjoy few benefits from productivity gains. Unions are weakened while manufacturing wages tumble and the middle class suffers.

In short, populists argue, the market is broken. The rules are rigged. The reigning ideology in Washington must be upended. Unions must be revived. Globalization needs to be reorganized.

The problem with this narrative is that it doesn’t really fit the facts. First, workers over all are not getting a smaller slice of the pie. Wages and benefits have made up roughly the same share of G.D.P. for 50 years. Second, offshore outsourcing is not decimating employment. According to the Bureau of Labor Statistics, outsourcing is responsible for 1.9 percent of layoffs, and the efficiencies it produces create more jobs at better wages than the ones destroyed.

Third, jobs are not more insecure. Workers are just as likely to hold a job for 20 years as they were in 1969. Fourth, workers are not stuck in dead-end jobs. Social mobility is roughly where it was a generation ago.

Fifth, declining unionization has not been the driving force behind inequality. David Card of the University of California, Berkeley, has estimated that de-unionization explains between 10 and 20 percent of the rise in inequality, and that effect was probably strongest decades ago. These days the working class is not falling behind the middle or upper-middle class. Instead, the big rise in inequality is within the office parks, among people who were never unionized. Middle managers are falling behind top executives.

The populists, who usually live in university towns, paint a portrait of unrelieved misery that badly distorts reality. It’s true that middle-class wages are lagging, but as Stephen Rose points out in The American Prospect, over the past 25 years the share of working-age adults in households making over $100,000 has risen by 13 percent while the share of households making less than $75,000 has dropped by 14 percent — after adjusting for inflation. The median household income of people in their prime working years (25-59) is $63,000. More than half of Americans have no credit card debt, and half of those who do owe less than $2,200.

Workers continue to see their wages rise as they age. The typical male worker with some college but no degree has seen his income rise from $34,000 in 2000 to about $40,000 today.

Members of the second and much more persuasive school of thought on inequality say the key issue is skills. Lawrence Katz, formerly of the Clinton administration, now of Harvard, puts it this way: Across many nations, the market increasingly rewards people with high social and customer-service skills.

A contractor who can work with customers, design kitchens and organize jobs may earn five times as much as one of his workers who has identical cabinetry skills. An office worker who is creative, charismatic and really good in fast-changing interactive settings now gets paid much more than a disciplined middle manager who excels at routine tasks. Katz describes a polarized economy. Wages are rising in the bottom quartile for workers who provide personal services. The middle is lagging. The real rewards are going to the top 10 percent, especially to those relative few who have the skills to transform organizations from the top.

In other words, the market isn’t broken; the meritocracy is working almost too well. It’s rewarding people based on individual talents. Higher education pays off because it provides technical knowledge and because it screens out people who are not organized, self-motivated and socially adept. But even among people with identical education levels, inequality is widening as the economy favors certain abilities.

In short, government policy is not driving inequality and wage stagnation. But government hasn’t done much to effectively address the problem either, even though per-capita education spending has more than quadrupled since 1950. What’s needed is not a populist revolt, which would make everything worse, but a second generation of human capital policies, designed for people as they actually are, to help them get the intangible skills the economy rewards.

What would a set of second-generation human capital policies look like? I’ll come back to that in a few days.