The Upside to Resisting Globalization
Kenneth S. Rogoff, the Harvard economist, noted at the International Monetary Forum in Davos, Switzerland, last week that India, which has “comparatively stringent restrictions on international capital flows,” also seemed to have the most optimists and seemed to be in line for economic growth in a year when few countries are.
“Thank heavens for the strong regulatory framework we have in our financial system,” he quoted one Indian corporate executive as saying.
In contrast, the countries that opened the most to the international capital markets, and that sought to bring in business with relatively lax regulations, now are suffering the most. Iceland was the wonder economy of the world; now it is broke.
The metaphor that comes to mind is that of a large ship. A single-hull ship will cost less to build and operate than a similar ship with a double hull. It will therefore earn more money on every trip, but it is more likely to be sunk if it encounters a severe storm or large iceberg.
The Globalization of money came before the Globalization of goods and trade. It happened after the Suez crisis in 1956.
ReplyDeleteSee http://www.bizarrepolitics.com/globalization-of-money-products.
And it so happened that the U.S. Federal Government sponsored the moving of factories outside of the U.S. in 1956 too. It was supposed to be a temporary program but it never ended.
It evolved into the Maquiladora factory program in Mexico with more than 2,000 U.S. factories moved to Mexico by 1992 even before Free Trade was consummated by Clinton in the passing of NAFTA and GATT in 1993. The number of factories moved to Mexico alone doubled to 4,000 quickly after that.
In the 1990s and more than a million U.S.workers lost their jobs in the computer industry alone. In 1998, 250,000 high tech workers lost their jobs in just that single year.
We witnessed more than a thousand computer dealers and system houses close down in just a tri-state area and hundreds of larger computer manufacturers fold too. I have infront of me several compatibility lists for storage devices numbering hundreds of companies that no longer exist. The supply channels dried up too with hundreds of distributors and brokers closing their doors.
I started up four different branch and regional offices for major computer manufacturers during my time and was offered a good position to start up a regional office for a very successful systems and programming
company serving large corporations. I was ready to take the job until I found out they were using green card workers from India who would world around the clock at half the pay American workers made and then take their money back to India.
For India, it proved to be a good deal. For the USA, it evolved into the economic crisis we are suffering now.
Federal Chairman Ben Bernanke said it all when he told Congress during the last stimulus package debate, the best way to stimulate the economy is to buy "domestically produced goods".
Of course this is an impossible task these days and the current stimulus money will just go to where the last stimulus money went.
Any extra money spent at retail will go to the place where the goods are made and will not stay in the USA to grow our economy.
Our economies based on making money on money instead of making has hit the third rail. The value of workers and labor have been deflated to the point where the U.S. can no longer support a Global economy.
We ask this. Who said we had to compete like this in a global economic arena. Globalization and Free Trade certainly has not evolved in any natural economic fashion.
See http://therationale.com for a look at philosophy and religion in the global economic arena related to the fragmentation of the common good and the assault on human dignity in the workday.
See also a mobile user friendly summary of articles by Ray Tapajna at http://tapsearchnewsmobile.filetap.com
http://tapsmobileworld.filetap.com
And feel free to copy any related article to our blog from http://ezinearticles.com/?expert=Ray_Tapajna ( Lend Lease Act was real Free Trade and not chop liver as in the Globalist World is the most popular one. )