The Facade of Mutually Beneficial Globalist Theory Crumbling…
Popular backlash against globalisation is sweeping rich countries around the globe according to a recent Harris poll. Large majorities of people in the US and in Europe want higher taxation for the rich and pay caps for corporate executives to offset the perceived unjustified rewards to the priveledged few and the negative effects of globalisation on working people. It’s about time.
Leaders in the World Trade Organization call anti-globalism hate speech, I call it predictable outrage.
In the U.S., Congress is awash with anti-globalist sentiment as the Senate prepares to vote on new trade restrictions aimed at China. I have been blogging about the destructive effects of unrestricted globalism since 1990 and continue to oppose unrestricted free trade at the expense of our way of life. Conservative pundits, many economists, and some analysts have been peddling globalism and what they believe to be the necessary melding of economies into one international marketplace in order for our way of life to continue. This argument in fact was championed and still defended by former Clinton cabinet member Robert Reich.
Reich, and these other globalist ideolouges are short-sighted and ultimately incorrect in their conclusions.
Many assumptions were made that have proven fatal to the globalist theory. For instance, the theory assumes that more education, at least according to Reich, equals higher income. This might be true if “higher end” jobs are made available to these eventual skill empowered graduates. The fact is, countries like China have been handed or more appropriately, stolen proprietary technology in aerospace, computer technology, and other areas that has led to manufacturing and capital flight from this country with a destination of China. In turn, the corresponding jobs within such sectors of the U.S. economy have evaporated. The original globalist theory had countries like China making sneakers and toasters, not complex microchips and high-tech aerospace parts. Meanwhile we brush our teeth with poison Chinese toothpaste, our pets die of tainted dog food, our kids play with lead based Chinese toys, and factory workers burn to death in Chinese steel mills with no consequence.
Another assumption did not account for developing countries to simply violate international trade policy at the expense of countries like the U.S. For example, China artificially devalues its currency to gain a trading advantage. Overtly unfair trade barriers are thrown up that make selling goods by U.S. companies in the Pacific Rim almost impossible. Couple this with some good old fashioned American coporate greed and you have a situation that has seen Chinese imports to the U.S. increase ten-fold since 1995 while real wages in the U.S. and exports steadily stagnate or even decline. We remain productive but we work like packmules to acheive that productivity as corporate management holds the baton of globalism and the threat of job loss over our collective head if we do not continue at the current breakneck pace. Yet, our most cherished and longest standing companies like General Motors and Ford suffer, and in the background, our corrupt politicians and unscrupulous corporate culture slowly sell our economy down the river. Where does it end?
If continued growth in GDP and a robust tax base is to continue, this country must be willing to protect certain industries for the sake of propping up a middle class that is being squeezed to the limit. If we do not, we may very well find ourselves in a shrinking economy as countries like China, Korea, Brazil and the European Union surpass U.S. productivity and per capita income. It may not be as outlandish as it sounds. I am not making an argument for unilateral protectionism, but when U.S. workers are made to compete against workers producing steel in China who earn $2500.00 American dollars per year and are expected to do it with no health care, no retirement security and a crumbling education system…something must change if modern Western culture is to survive.
Posted on August 7, 2007, in Corruption, Economic Policy, Globalism and tagged China, destructive trade policies, Economic Policy, GAT, Globalism, globalism wrong, NAFTA, outsourcing, Politics, tainted goods, trade deficit, trade policy, underpaid workers, unfair trade, Wal-Mart, xenophobe. Bookmark the permalink. Leave a comment.