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Is globalization the underlying problem?

  1. Make  Money profile image72
    Make Moneyposted 8 years ago

    After watching this video I got thinking that globalization could possibly be the underlying problem behind all these bank failures and stock market crashes.
    http://www.keatingeconomics.com/?source=sem-ba

    What do you think?

    Mike

  2. knolyourself profile image60
    knolyourselfposted 8 years ago

    Globalization is great for US industrialites, who have shipped all production overseas, for cheap wages and no
    health-care and retirement costs. The US doesn't make
    and sell much anymore. They just print money. The US is bankrupt. So in that sense maybe globalzation brought the system down.

  3. JYOTI KOTHARI profile image76
    JYOTI KOTHARIposted 8 years ago

    It is definitely. I have been describing all these in my hubs since last 5 months. I have written a series of hubs and still writing. The US was the pioneer of globalization and forced it to many countries against their will. India is one of them. Now it6 is turned. Now the jobs are with China and India.
    Americans still do not understand underlying current. They do not even bother to know about what is going on globally.

    Jyoti kothari

  4. Make  Money profile image72
    Make Moneyposted 8 years ago

    I'm glad you both agree.  I think instead of moving towards the North American Union we'd all be better off if NAFTA was renegotiated for fare trade instead of free trade.  Same goes with the other free trade zones around the world as well.

    I think if a country has the ability to produce certain products or services they should be produced in that country.  Before NAFTA was forced on us (I mean the citizens of the US, Canada and Mexico) every Prime Minister of Canada before Mulroney said that reciprocity (free trade) could not work between Canada and the US because the economy of scale is much larger in the US.  Economy of scale meaning the size of the market a company is producing for.  The US has approximately 10 times the population of Canada so the economy of scale for US manufacturers was much better compared to Canadian competing manufacturers.  Since NAFTA Canada has seen it's manufacturing sector decline in a big way.  Canadian exports to the US are mostly natural resources now.

    Same goes with Mexico with the produce sector.  Just a couple of weeks ago I seen a documentary that said the illegal aliens from Mexico has increased since NAFTA because the produce exports from the US has put Mexican workers out of work in their own country.  Again the economy of scale of the US factory farms allows them to sell produce in Mexico for less than what the Mexican farmers can produce it for.  Ironically some of the Mexican illegal aliens end up working for peanuts for the US factory farms that put them out of work in Mexico.  It's a shame.

    And now that American jobs are being shipped to China none of us have gained from NAFTA.  Just the large industrialists.

    Now when you add environmental factors from the emissions caused by shipping products around the world, to the economic meltdown we are witnessing and what I've mentioned above it really does make sense to produce as much as we can in our own countries.  Don't you think?

    Mike

  5. thranax profile image60
    thranaxposted 8 years ago

    It really well could be!

    ~thranax~

  6. solarcaptain profile image74
    solarcaptainposted 8 years ago

    No.  Globalization is answer for poverty in the world.  They don't take any jobs the U.S. does well anyway.  We make great computing devices but our cars no longer match world needs.   Even we don't buy our cars anymore.

    The problem is that Regulations were removed from finance and stock market so that some weird and risky investments were allowed.  It appears about a trillion bucks has disappeared into the pockets of somebody?  Could it be we have been bamboozled again by the bin ladins
    No attempt was made to identify the manipulators who made a fortune on 9-11. It was said they cannot identify them?!  Why the hell not???? Is that de-regulation also? We wasted no time allowing the family of once playboy Bin Ladin to be whisked out of the U.S. In fact they got out the next day after 9-11. Then we allowed him to escape to mock and commit more insane acts against us.

    I lost overhalf my retirement and more in confidence in our system to bounce back.  Banks need to pay bigger dividends.  Foreign investors enjoy 5-15% routinely in dividends.  Ours? 2% They wonder why we don't save.  Also credit cards can charge what they want in interest. That's de-regulation for you.  Get what you can and screw the public. It' wrong, and it's obscene. The purpose of government is to protect it's citizens. That includes defense, health care, public order, and insuring skilled workers are in supply so we don't have to hire foreign workers, which we are doing now, such as doctors, nurses, programmers, and  soldiers for our armed services.
    It also includes protecting our environment, and not supporting religion but taxing it like any other organization. It's about fairness to all, which was the original idea behind the Constitution. We can't hold people back and then accuse them of being inferior.  Especially if their views are different, their skin a different color, or they practice a different religion than the majority.

    Leave man to his own devices, and he will exploit others to make a buck. Controls are used to keep the race fair, not to impede progress.  Those rich who enjoy the advantages of regulation may spout off about its evils but they really enjoy the big bucks they make and don't want to change it.

    We need to take the gloves off and put some people in jail for A LONG time and not let them make book deals and profit from ripping off pensions of little old ladies, disabled, and unsuspecting citizens who trusted the government.  We need to express to congress our outrage at the deception engaged in by hoodlums in government and business.
    Thanks

  7. JYOTI KOTHARI profile image76
    JYOTI KOTHARIposted 8 years ago

    America and Americans advocated free economy and personal freedom for a very long time. many of the 3rd world countries were not agreed with them because of their poverty and lack of resources.
    America and Americans enjoyed the fruit of their supremacy and going down because of their lathergy and confinedness.

      Why are they crying now so loudly?

      Jyoti kothari

  8. knolyourself profile image60
    knolyourselfposted 8 years ago

    "America and Americans enjoyed the fruit of their supremacy and going down because of their lathergy and confinedness." Most americans haven't got a clue what is going on, except that something rotten in Denmark.

    1. thranax profile image60
      thranaxposted 8 years ago in reply to this

      Well, I wouldn't agree that we don't know whats going on. The greater majority of this area knows exactly what is going on, fact wise.

      ~thranax~

      1. JYOTI KOTHARI profile image76
        JYOTI KOTHARIposted 8 years ago in reply to this

          Most of the Americans are not interested in economy. I have written this thoroughly in one of my most recent hub using the data of top search words in the internet.
          If one is not concerned with one's own problem and just shuts his eye, is bound to face a crisis. This attitude is suicidal.

           Jyoti Kothari

        1. thranax profile image60
          thranaxposted 8 years ago in reply to this

          Jyoti, You can't go based on Keyword Research! What to know who makes more then 80% of those keywords? Kids and Teenagers who don't need to often worry about the economy.

          ~thranax~

  9. solarcaptain profile image74
    solarcaptainposted 8 years ago

    No.  Globalization is answer for poverty in the world.  They don't take any jobs the U.S. does well anyway.  We make great computing devices but our cars no longer match world needs.   Even we don't buy our cars anymore.

    The problem is that Regulations were removed from finance and stock markets so that some weird and risky investments were allowed.  It appears about a trillion bucks has disappeared into the pockets of somebody.  Could it be we have been bamboozled again by the bin ladins?
    No attempt was made to identify the manipulators who made a fortune on 9-11. It was said they cannot identify them?!  Why the hell not? Is that de-regulation also? We wasted no time allowing the family of once playboy Bin Ladin to be whisked out of the U.S. In fact they got out the next day after 9-11. Then we allowed him to escape to mock and commit more insane acts against us.

    I lost overhalf my retirement and more in confidence in our system to bounce back.  Banks need to pay bigger dividends.  Foreign investors enjoy 5-15% routinely in dividends.  Ours? 2% They wonder why we don't save.  Also credit cards can charge what they want in interest. That's de-regulation for you.  Get what you can and screw the public. It' wrong, and it's obscene. The purpose of government is to protect it's citizens. That includes defense, health care, public order, and insuring skilled workers are in supply so we don't have to hire foreign workers, which we are doing now, such as doctors, nurses, programmers, and  soldiers for our armed services.
    It also includes protecting our environment, and not supporting religion but taxing it like any other organization. It's about fairness to all, which was the original idea behind the Constitution. We can't hold people back and then accuse them of being inferior.  Especially if their views are different, their skin a different color, or they practice a different religion than the majority.

    Leave man to his own devices, and he will exploit others to make a buck. Controls are used to keep the race fair, not to impede progress.  Those rich who enjoy the advantages of regulation may spout off about its evils but they really enjoy the big bucks they make and don't want to change it.

    We need to take the gloves off and put some people in jail for A LONG time and not let them make book deals and profit from ripping off pensions of little old ladies, disabled, and unsuspecting citizens who trusted the government.  We need to express to congress our outrage at the deception engaged in by hoodlums in government and business.
    Thanks

    1. thranax profile image60
      thranaxposted 8 years ago in reply to this

      What a good incite.

      ~thranax~

  10. Make  Money profile image72
    Make Moneyposted 8 years ago

    solarcaptain at the end of the video the comentator says "except that now we are globalized that the bubbles will be much bigger it will cause a financial crisis not just in the United States but in many parts of the world"

    So that definetely leads me to believe that the underlying problem is globalization.

    I just realized some more distressing things about the North American Union that I had to post on my recent Hub.

    Mike

  11. 59
    Donna18posted 8 years ago

    hi Mike I am new to this hub forum and I found your thread quite interesting so I decide to start the proceeding from this particular thread. I believe globalization is not at all responsible for stock market crush. Globalization has opened so many business and employment opportunity to the countries where it was so much required. Many of our fellow members has said that America and American are least bother with the financial crises suffered by the whole world economy. But I believe they are also under stress with such kind of crisis as they have invested huge capital in companies by FDIs or FIIs. So it is totally wrong perception that they are not worried with the current situation.

    1. Make  Money profile image72
      Make Moneyposted 8 years ago in reply to this

      I did not say that Americans are not concerned with the current situation.  In fact a lot of people in the US are hurting because of it.  What I am getting at is that it is just helping large corporations, with both the recent bailouts and the previous free trade agreements. 

      Sure some parts of the world may be benefiting from the free trade agreements but at the same time others are hurting because of it.  American jobs being moved to India or China because of cheaper wages is a good example.  I still think that countries should produce goods and services for their own people.  A better way to help developing countries is to support or encourage developing companies in those countries.  Not to move huge blocks of jobs from a developed country to developing countries.

      I just got some good news from the Canadian Liberal Party concerning the North American Union.  I posted it on my Hub.  It looks like the North American Union is going to be stopped for another term.

      Mike

  12. Reealjrd profile image60
    Reealjrdposted 8 years ago

    Hello All,

              Acually Globlalization is nothing but a step for re-improvement or can say for taking new steps for development. I do agree with the comments of all. As Jyoti has said America is the top most company where globalization takes place and maximum people have to face he hazard of globalization.

  13. Make  Money profile image72
    Make Moneyposted 8 years ago

    Yesterday on the news, while talking about international trade and globalization, I heard Obama say that it shouldn't be a race to the bottom.  He said with free trade agreements there should be reciprocity (fare trade).  He went on to say that countries importing to the U.S. should accept as much U.S. exports.  Basically what he was saying is trade agreements should bring importing countries up to American standards rather than dropping American standards to the importing countries standards.

    It seems Obama also thinks that globalization may be a part of the underlying financial problem.

    Mike

    1. ngureco profile image87
      ngurecoposted 8 years ago in reply to this

      The US economy is one of the finest economies in the world. The US has quality goods at high prices. They have everything money can buy.

      But they have to export more than they are importing. You can not force China to import your goods and neither is china forcing you to import their goods. It all happens because of free will and market forces. If a product is not economical, why should you buy it? If a product is low priced and economical, why should you not buy it?

      The goods from US are of good quality but the prices are not workable. In many markets, especially in the developing countries, workable prices are more important than quality. If the average labour cost per hour in US is $17, then do not expect to produce competitive goods in US for many world markets. At $17, you can have a Chinese working for you for a whole 100 hours with no insurance and medical care to pay for.

      When US industries move all production to china, it’s the Americans who benefit most by getting inside a 1.5 billion people market. If they were not benefiting, they would not have moved production there in the first place. 

      China has a complete catalogue of US goods but can not order much because prices are not workable. Perhaps they can order a few planes just as gesture of saying “we are trading partners” and “we have to reciprocate by buying planes even though these planes are very expensive to us”.

      Unless US get back to the drawing board, I do not think they have many cards under the table.

      The one million dollar question is: are the American laborers ready to accept less than a dollar per hour? Never, Never!

  14. JYOTI KOTHARI profile image76
    JYOTI KOTHARIposted 8 years ago

    The globalization process is forcing them to reduce their labor.
      Jyoti kothari

  15. knolyourself profile image60
    knolyourselfposted 8 years ago

    "The US economy is one of the finest economies in the world. The US has quality goods at high prices. They have everything money can buy."
    "But they have to export more than they are importing."
    Think you got your thing backwards my friend. The US is the market for the world. Ever hear of the trade deficit. The US market stopped buy, world recession.

    1. ngureco profile image87
      ngurecoposted 8 years ago in reply to this

      A positive balance of trade is known as a trade surplus and consists of exporting more than is imported; a negative balance of trade is known as a trade deficit and consists of importing more than is exported.

      The US trade deficit is a record high of over 900 billion dollars. This sizable trade deficit has only been possible for the US because of the use of the US dollar as an international reserve currency. This means that as long as there is a demand for US dollars overseas, the Federal Reserve can just print more dollars out of thin air without any negative consequence related to exchange rate.

      But for how long will they print more dollars out of thin air without any negative consequence?

      http://upload.wikimedia.org/wikipedia/en/thumb/2/26/USTrade1991-2005.png/500px-USTrade1991-2005.png

  16. Make  Money profile image72
    Make Moneyposted 8 years ago

    What I'm getting at is if just countries like India and China are the only countries benefiting from globalization, as well as the multinational companies at the detriment of workers in the U.S., Canada and other countries then why continue with a failed plan?  You know, especially if there's no reciprocity.

    1. thecounterpunch profile image56
      thecounterpunchposted 8 years ago in reply to this

      It's a failed plan for the common people like you and me but not for the super elites (The Rockefeller, Bush, Warren Buffet - Buffet which fakely pretends to be a "socialist" caring for social equality whereas he's most hypocrit about tax as it pays his huge stake in Bonds Interest paid with people's money through gov's debt escaping the tax himself through foundation and also biggest stock manipulator on Earth see one of my hub smile)

    2. Nickny79 profile image88
      Nickny79posted 8 years ago in reply to this

      Were it not for the greed and corruption of union bosses, we might still have a manufacturing base in the United States.  Companies exist to make a profit--they are not health insurers, retirement funds or the expense account of union bosses and community organizers.

      Globalization benefits everyone on the globe.

  17. knolyourself profile image60
    knolyourselfposted 8 years ago

    Not sure about Canada, but is not that US moved industry off-shore for cheap labor costs and more profits, otherwise called globalization.

  18. Make  Money profile image72
    Make Moneyposted 8 years ago

    Offshore Outsourcing humor

    You might be able to relate to this

    http://www.flixxy.com/offshore-outsourcing.htm

  19. Make  Money profile image72
    Make Moneyposted 8 years ago

    Yeah globalization is definitely a failed plan seeing not many benefit from it.

  20. Make  Money profile image72
    Make Moneyposted 8 years ago

    How have you personally benefited from globalization?

 
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