bank chairman says worker education is the key to helping
displaced workers find jobs.
By Mark Gongloff, CNN/Money Staff Writer.
NEW YORK (CNN/Money) - Federal Reserve
Chairman Alan Greenspan said Friday that
the steady movement of U.S. jobs offshore
should help the economy in the long run,
but that American workers needed to be
better-prepared to take whatever higher-skilled
jobs come along to replace the lost jobs.
noted that, in recent years, new technology has helped
businesses produce more with fewer workers, while globalization
has led to an increasing flow of U.S. jobs moving overseas.
This process is good for the broader economy in the long run, he said,
helping to raise standards of living, but is causing "inevitable
stresses and anxieties" in the short run.
is a palpable unease that businesses and jobs are being
drained from the United States, with potentially adverse
long-run implications for unemployment and the standard
of living of the average American," Greenspan said
in prepared remarks delivered to the Greater Omaha Chamber
solution to the problem, as he told Congress last week,
is to do a better job of educating American workers.
capacity of workers, after being displaced, to find a
new job that will eventually provide nearly comparable
pay most often depends on the general knowledge of the
worker and the ability of that individual to learn new
skills," Greenspan said.
said this process has been working in the U.S. economy
for many decades, helping workers find new work and pushing
wages steadily higher, and he saw no reason why it should
the long sweep of American generations and waves of economic
change, we simply have not experienced a net drain of
jobs to advancing technology or to other nations," he