If we didn't know better we would swear these folks are reading EP. Over at the Real Economy site is a very good article called Labor Shock.
The Economic Crisis Was Caused by Reduced Labor Income
This article argues that the bursting credit bubble is not the core reason for the advanced economies’ sudden reduction in spending. The credit bubble delayed that reduction, but can no longer prevent it. Rather, we assert that 1) the advanced economies are experiencing labor shock as they fail to adequately adjust to the changes in labor supply and demand, 2) that this shock is causing a severe wage income reduction in the developed economies, and 3) that the result of reduced income has been reduced demand from the West that is not being taken up in emerging markets, and therefore 4) that the reduction in developed economy labor income precipitated the credit collapse and is the fundamental cause of the current severe recession.
Now it is very nice to see others finally, finally focusing in on global labor arbitrage as the real cause of the economic crisis and how the housing bubble simply masked the inevitable results of displacing workers with cheaper labor, which started in earnest in 2001.
It's yet to be seen if their solutions are one's I call for, which fundamentally states trading people is unacceptable. Will it be realized that a nation-state, citizenship really is a glorified labor union, or should be and all nations should be fighting like hell for jobs, industries, wages for it's citizens?
At least others are realizing this ride down to the race to the bottom is the ultimate economic Armageddon from which the United States may never recover.