Globalization and Outsourcing are Plantation Capitalism
in Disguise!
Globalization and outsourcing have been a trend for many years. This is the train to nowhere.
When corporations practice globalization, they basically practice Plantation Capitalism. They source labor from wherever it is cheapest and use the reduced cost of labor to increase their margins. Their market is not their workers, because they will not pay them very much at all. They plan to sell in developed countries and we are their number one market.
They use several techniques to lower the cost of wages:
1. They move production overseas or to Mexico.
2. They reduce wage scales here by threatening to move production overseas.
3. They bring in a desperate proletariat of immigrant labor (similar to an old time plantation bringing in slaves or indentured servants.)
4. With the internet and increased communications, corporations can move service jobs to India putting severe global pressures on the wages in these jobs.
As they put pressure on wages and employment, retail sales compress further weakening the economy, further suppressing your wage.
When corporations practice globalization, they basically practice Plantation Capitalism. They source labor from wherever it is cheapest and use the reduced cost of labor to increase their margins. Their market is not their workers, because they will not pay them very much at all. They plan to sell in developed countries and we are their number one market.
They use several techniques to lower the cost of wages:
1. They move production overseas or to Mexico.
2. They reduce wage scales here by threatening to move production overseas.
3. They bring in a desperate proletariat of immigrant labor (similar to an old time plantation bringing in slaves or indentured servants.)
4. With the internet and increased communications, corporations can move service jobs to India putting severe global pressures on the wages in these jobs.
As they put pressure on wages and employment, retail sales compress further weakening the economy, further suppressing your wage.
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Suppose you fire Charley in Iowa, move his job to Ho Chi Minh City, and hire "Frances " to do his job, what happens next? Well, if you pay "Frances" 1/10 of what you were paying Charley, she can only buy at most 1/10 of what Charley would have bought.
Any market we gain from globalization is more than offset by the loss in demand in the domestic market! |
The notion that we are going to be saved by exports to low wage countries is a myth. It is a mathematical impossibility. Not "fuzzy " math. Just math.
Interestingly, the countries that develop high wage scales from low wage scales tend to be mercantilist countries like Japan, Korea, and China. When their wages are high, they will make sure they run a trade surplus.
This is a heads you lose, tails you don't win situation for the American middle class. You don't want to play this game with real money. Unfortunately, our leaders have played this game with our money and the result is an 18.2 trillion dollar national debt.
The result is disintegration in Baltimore, bankruptcy in Detroit, 27 year olds living with their parents.
China has run a mercantilist trade policy for 20 years and their economic output per capita is up by a factor of 6 (600 %).
The US economic output per capita for the last 20 years has grown by a factor of .34 (34 %)
The Chinese have grown 17.6 times as fast as we have over a period of 20 years.
You are at home. You can say it. Your leaders suck.
You do not need a Bush in the White House.
You do not need a Clinton in the White House.
You need accountability.
You need someone who cares about the middle class and will balance the trade deficit and the budget deficit.
Interestingly, the countries that develop high wage scales from low wage scales tend to be mercantilist countries like Japan, Korea, and China. When their wages are high, they will make sure they run a trade surplus.
This is a heads you lose, tails you don't win situation for the American middle class. You don't want to play this game with real money. Unfortunately, our leaders have played this game with our money and the result is an 18.2 trillion dollar national debt.
The result is disintegration in Baltimore, bankruptcy in Detroit, 27 year olds living with their parents.
China has run a mercantilist trade policy for 20 years and their economic output per capita is up by a factor of 6 (600 %).
The US economic output per capita for the last 20 years has grown by a factor of .34 (34 %)
The Chinese have grown 17.6 times as fast as we have over a period of 20 years.
You are at home. You can say it. Your leaders suck.
You do not need a Bush in the White House.
You do not need a Clinton in the White House.
You need accountability.
You need someone who cares about the middle class and will balance the trade deficit and the budget deficit.
