How Globalization affects Economics

How Globalization affects Economics

Today I found a very appreciative commentary to my work

Substantially, the post is actually the freshest on this notable topic. I fit in with your conclusions and will thirstily look forward to your future updates. Just saying thanks will not just be enough, for the phenomenal clarity in your writing. I will right away grab your rss feed to stay abreast of any updates. Good work and much success in your business dealings!  And there are much more on this side.

It is obvious that there are many commoners and intellectuals who find my articles very important and realistic, however these people are not the ones ruling this world these last I believe are far away from the problems of everyday life so they could not and do not like to question the establishment, finally they are the establishment themselves or serve it honorably, so it seems they are to hang up themselves if they attempt changing it and who would like such a thing.

There is a great division between rulers, the establishment and the rest of people: it is just so obvious more like a movie: – how when someone is elected by the commoners to become a ruler gets pressured by the establishment and changes his approaches under their pressure!

What is the establishment and History of the establishment?

There were many centuries of human history when many had to work for a few to be rich; neighbors were enslaved and villages oppressed: the productivity of the past was so low and so much off that it was literally difficult to maintain any “normal” standard of life but through oppression, slavery and injustice. The level of “Social Order” was ruling the world: nationalism, religion and xenophobia were “balancing” this injustice by “we are better then you are” approach. Wars and plaguing others were releasing the valves of social buildup by internal social injustice: nobilities and war lords are competing to show “greatness and sense of destiny” for being oppressive to their own people. The economic order of superiority was the product of these low productivity and supply driven economies.

The Capitalism is a higher level of such “social order”: using the idea of an economy and marketplace driven by trickle-down economics of over-excessive concentration of capital which by coming down to being invested creates jobs. In a supply shortages driven marketplace the chosen are the wealthy: they are noble, smart: the pillars of the society; doing good by being interested for the society to prosper. Many other individuals are involved in working in such Capitalistic economy of pro-supply by establishing the middle class of hard working individuals succeeding to live relatively well. The governments are supporting the establishment from one side believing in the ideology of free Capitalism economics and from another side being pressured by the lobbyists and interest groups. Social, Medical, and Educational expenses in such economics are considered slowing economic growth, “shady” business laws and lack of market regulations are considered prompting economic growth. Transnational Corporations are considered the front runners of development and economic growth; Industrial Production is considered the main additive to country’s GDP and its Fiscal reserves. Development in a pro-supply Capitalism is only possible by industrial production with a few exceptions of row resources or capital lending countries who however invest into other countries’ industrial production anyway.

There are a few major distinguished fundaments of modern Capitalism: market speculations that allow concentration of capital by the wealthy, shady business laws and lack of market regulations an easy business for the transnational corporations and market exchanges that allow concentration of capital, lack of consumer protection laws, social security laws, medical insurance laws (well things are changing in these points lately), employment protection laws that allow quick globalization and again concentration of capital by the few. The Capitalism boosted well Market Globalization in a pro-supply marketplace supported by Social Order ideologies and hard working workforce constantly improving productivity and company structure. It is considered that unsuccessful could be only people not willing to go to school or to work hard: the lazy and incompetent ones. The Ideology of the Capitalism states that everyone can succeed if he or she studies or works hard.

Well, for the last 10 years the US workers’ have improved their standard of life under zero, actually their income adjusted to inflation has been decreasing when the US workers have kept raising their productivity better then anyone in the world for the same time.

Well, for the past 20 years the majority of industrial production was either totally moved or greatly outsourced to China, now Brazil, India and Vietnam, because of the obvious reason of better Return on Invested Capital from such industrial production not done on the US soil.

Well, the high technologies have come so high that even retained on the US soil industrial production has reduced the number o industrial employment by far.

Well, the US National debt based on ever ongoing Deficit has risen to $13 Trillion when the US Standard of Life has stalled.

Well, many other countries around the Globe have deepen in deficit and national debt so being US trading partners have shorten the marketplace for US goods.

Well, even running high deficit and national debt the value of the USD has risen substantially instead of declining that added stress to the US industrial production too.

Well, even President Obama is running deficit and trying to help many industries, for the US consumer, the US Medicare, Education and overall Employment this administration abilities and the results of their actions are very limited or may be called modest indeed. When China posses and exercises much more economic freedom to manipulate markets, industries, social and infrastructural policies, and export by all means considered: having huge Fiscal Reserves and thus possessing incredible power in time of everyone’s Fiscal shortages China is showing flexible and pragmatic economic approaches balancing private business with governmentally run business, social and infrastructural policies with privately employment on a flexible employment marketplace, building equity driven economy by using equilibrating “as it comes: as it goes” economics.

Well, the European Union follows closely the old ideology of trickle-down Capitalism tightening budgets and imposing austerity policies but success has been elusive neither for countries like Ireland accepting the austerity economic measures to their fullness, nor countries like France limiting austerity measures despite high national debt. The question is how low the EU countries must cut their budgets to start the trickle-down effect of the modern Capitalism if ever.

Well, neither Marx’s trickle-down Capitalism, nor Keynes’s modest deficit monetary expansion may only resolve the problems of the modern days Globalization and rising Productivity by pro-demand accelerating market forces in which it is obvious that not all or even many countries might industrialize themselves or for already industrialized to maintain industrial consistent economic growth. Used by lending system founded on high interest rates may function well only in economic growth or in short term economic adjustments, but it is impossible to maintain proper financial operations and financial stability in long term economic recessions, and because the Global financial system is alike to the individual markets financial system it has the same weaknesses as the rest of not being able to go through long term economic adjustments. However the last 2007-2009 Global Recession of which consequences are still in effect showed to all that the currently going and in the future coming economic adjustments are not going to be short or self-adjustable as these were suppose to be following the ideology of modern Capitalism: thus if Governments have not intervened into the last recession the probability for it’s self-adjusting are very improbable indeed.

Well, if the US Government has taken on many economic functions and controls to fight the last Great Recession what kind of actions by governments could be expected in case of new recessions: it seems unstoppable trend of governments getting involved in business and financing.

Well, if the modern Capitalism cannot use its economics to self-adjust markets in short term recessions and if trickle-down economics does not trickle down capital into provoking industrial growth but are moving to oversees, and if the recessions are to become longer and the governments taking over business and financing thus to disrupt normal economic cycles, and if the financial system that uses high interest rates cannot sustain longer economic recessions and prompt economic growth, and if transnational corporations cannot be any close to maintain global industrial employment, and if the huge ability of China and others to expand industrial production to unknown levels suppressing such industrial production in many other countries, and if high technologies are prompting lower industrial employment, and if, if then the Capitalism is not able to deal with the new developments of such Globalization and rising Productivity by not being able to establish a system for wealth distribution and redistribution needed to maintain fiscal stability and consumption in such economic environment.

Well, if the alternatives for such inability of the Capitalism to deal with the new global developments are the governments to take over, maybe the only realistic expectations should be evaluating the abilities of the Governments to create employment and consistent growth in some kind of socialism……. unless?

Unless an alternative to the Capitalism or the Socialism system of economics could balance “demand-to-supply” global marketplace, could deal with employment, shortage of industrial production, and economic adjustments by saving private entrepreneurship and personal freedom as main forces and “tools” of economics and for such I consider the economic driven by the markets I called Market Economics or Quantum Economics because it is founded of “as it comes: as it goes” usage of economic tools for adjusting economic fluctuations. Under these new conditions the “Social Order” and economic principles of the Capitalism are about to be replaced by a “Market Order” of market forces and economic principles of pragmatism and flexibilities.

And here finally I will end with what I was suppose to start: the Global Worming and the Earth’s exhaustion of resources. I will just say that the only way for dealing with these most important issues and preserve Earth and Humankind is through pragmatically using economic structures and economic “tools” to enhance renewable energy sources and reduce pollution by dealing with poverty, underdevelopment and unemployment

How Globalization affects Equity

How Globalization affects Equity

In times of Globalization some economies and markets build equity however some not only cannot use their equity to enhance their standard of life but lose their equity to lack of business that provokes deterioration of equity or at least discount of equity.

Equity is in the foundation of the economy and the market: in the past most of the equity consisted to physical property but gradually more intellectual property and subjective market securities have become equity. Thus when individual or corporate equity is evaluated plus the physical equity if any the intellectual property, the hold securities and the projected economic growth are considered equity. The trend toward intellectual property and market valued securities instead of physical equity is more then obvious for private and corporate equity equally. However, private equity for the majority in the world consists of physical property equity when intellectual and market securities equity is more possessed by very wealthy individuals and individuals living in the most developed economies.

There is direct correlation between market individual income and equity value, because equity value reflects general market value of a property which relates income financial statement. A property value supported by higher income statement is higher then a property value supported by lower income financial statement. In some cases as it happened before the last Great Recession market property value became uncontrollable prompted by pure speculations and compromised lending practices. Consequently the exasperation of property value burst bringing financial losses and lost of properties to many. Seemingly equity of property values should well reflect the real market property values which reflect general income level in this market. Talking about equity not related to physical property but could be intellectual property, market security, or projected economic growth with very high subjectivity in the real economy the market value of such equity is more related to security of intellectual property, market securities and certainty of projected economic growth. Factors that directly affect these equity are scrutinized historical development of the market, most recent economic indicators showing the direction of this market and consistent indicators of the direction of proximal development, factors that indirectly affect these equity are the level of real acting rule of law and contracting laws of such market, the clarity and accountability of the marketplace and trading exchanges, the clarity and accountability of intellectual property laws, and the level of personal liability of the risk management of corporate structures, the fiscal stability and the respective infrastructural maintenance and improvement, and social and medical security in this market.

Globalization has enhanced the need for individual markets of using Social and Infrastructural expanses for balancing “demand-to-supply” when in the past these expenses were functioning as stoppers toward economic growth because the overall productivity was lower and there were many closed for globalization markets, now the conditions are changing the productivity is rising constantly and the almost all markets are eager to globalize. Other major changes at the moment are the China’s entering WTO and the global competition and the consistent economic growth for the last 20 years China has succeeded. By attracting the majority of global investment and by becoming economy to which outsourcing and new startup manufacturing China become the industrial power that might well tip-off “supply-to-demand” into “demand-to-supply” market configuration; such processes shorten already shortening employment in manufacturing to the rest of the world. Manufacturing, industrial production could well be considered in the foundation of the modern Capitalism that adds the most to fiscal reserves of most of global economies by highly paid employment; the most advantageous return of investment and the most secure buildup of equity: the higher growth of industrial production the higher level of equity value.

The Most Developed Economies are considered the Most Industrialized Economies.

In such market environment of Globalization (outsourcing and moving industrial production to less expensive economies) and rising Productivity (improvements in high technologies and shrinking employment marketplace cause this rising productivity) industrial employment is shrinking fast at US. Very few are the economies of Most Developed ones that have succeeded under current forces of industrial competition to sustain industrial production and maintain their industrial leadership: Germany and Japan are the few. The value of equity as stated closely relates industrial production of the modern day economics therefore overall such value will deteriorate in markets with deteriorating industrial production.

Modern economics does not take in consideration the value of already succeeded equity if economic industrial economic growth is not maintained and only short term self-adjustments are project-able. Such positions of equity directly relate the financial system of individual markets and the global financial system which lends on relatively high interest rates and short term, and in which corporate structures are run on short term profitability. Indeed equity related intellectual property and equity related market security are long term corporate equity however the fluctuations of overall market equity value often fluctuate and reflects corporate equity values violently.

In the past when supply was leading and most developed countries were firmly holding onto the global industrial production such fluctuations of individual and corporate equity values were productive because of prompting concentration of capital then prompting consecutive economic growth, than also less developed economies were more like satellites to the most developed ones being able to maintain fiscal reserves for social and infrastructural expenses. Even some parts of such industrial production was developed here and there in different countries the majority was still kept by the most industrialized economies. The equity values in most industrialized markets were therefore higher then these of in less developed markets and these still are, except that under the new arousing conditions of globalization and rising productivity industrial production has been gradually moved and outsourced to China, and now India, Brazil and Vietnam which are vastly populated countries with inexpensive labor force and some good industrial structures, therefore in terms of value of equity related industrial production the most definitive becomes the issue of lack of such industrial production to many economies and if such is reduced or lost what consequently would be their value of equity. Intellectual property and market security values are much more flexible and adaptive then the real estate equity value because intellectual property and market security equity reflects an economy, country, marketplace achievements in education, social and infrastructural development that requires long term development thus countries as US that very well represent such succeeded development will be hard to be shut away as holders of such equities. However such superiority is a short term prospective even to the mighty US because of the Internet and the constant exchange of information and technologies, because of the outsourcing and moving industrial production the new emerging economies would popup if these themselves develop required infrastructure, social structures, and education to respond to the changing realities. In case of China when in the past its communist social policies were contra productive to its industrial growth and development under the most recent globalization and rising productivity China’s Social and Infrastructural expenses proved to be very productive in balancing its “demand-to-supply” and thus succeeding consistent economic growth even when the rest of the world went through the Great Recession, thus China’s equity has risen much because of its economic growth.

Equity values are very sensitive economic indicators more like currencies; the difference between them is that currencies’ values are more related to short term global adjustments and fluctuations when equity works in longer terms. Equity values are harder to built: real estate, infrastructure, intellectual property, market security equity values are to be used in the future as economic indicators for a country, economy, market evaluation and underwriting. To use equity values, economics must change the ways these values are preserved and enhanced even when industrial production is not going to be the main economic indicator as it has been for some time. Economic “tools” are to be used to sustain equity values in a “as it comes: as it goes” basis and approach, that approach differs form country, economy, market to country, economy, market because of their level of development, mentality and tradition. In some Social and Infrastructural expanses should be reduced in short term to prompt economic development in some the Social and Infrastructural expenses should be well enhanced to prompt such economic development. There are some economic “tools” that are for all and these are the expanses for preventing pollution and implementing renewable energies, these are economic “tools” for balancing “demand-to-supply” on a global scale and are to be financed by the global financial structures of the World Bank, IMF and WTO through Commercial Banks on a marginal interest rate or subsidies. For such lending paramount should be the enhancement of businesses security: of business and contracting laws, of personal liability to corporate structures, of corporate bonding. The global financial structures should be given the controlling functions over global balance of “demand-to-supply” to prevent from inflation, the issuing of monetary quantities power to keep interest rates low, the targeting countries, economies, markets weak points for building equity, the controlling over countries, economies, markets compliance with the guidelines and underwriting, the controlling over commercial banks’ execution of these guidelines and underwriting matrix.

The existing equity of countries, economies, markets should be the foundations for low interest lending therefore overall security should be enhanced thus countries, economies, markets could become eligible for financing

In the new century of market economics industrial production should not be the only way for fiscal reserves but ones equity that could be built by properly balancing its “possible demand-to-supply” and properly and pragmatically using all economic “tools” to raise ite “security”.

How Globalization uses “old tools of” Economics in New Ways

How Globalization uses “old tools of” Economics in New Ways

What really differs the most recent times of general outsourcing of industrial production to countries as China from similar occurrences of the past when such outsourcing was done to Japan is the magnitude of the Chinese marketplace, the ways Chinese Government balances market “demand-to-supply” in trade, employment, by using its governmentally run business, Social, Infrastructural and Fiscal policies instead of relying on the market forces only. In the past such approach could bring inflation, shortages and general dysfunction of exasperated and exaggerated employment, low productivity and generally low competitiveness. Similar to the Chinese policies were used by the Soviet Block Economies and is well know the consequences to these countries of constant economic struggle and underdevelopment, low standard of life and shortages. Thus, what is the difference of using similar approaches now-days when the experience of the past is nowhere functional?

Also, personal freedom was associated with economic development and advance in the past so what changed most recently for totalitarian country of China to manage consistent growth even where a single party government did not change, and personal freedoms in China are limited?

What is wrong with this new emerging picture of Chinese economy run by a communist government braking self adjusting dialectic economics of Capitalism however succeeding in maintaining consistent economic growth even in time of great recession and the rest of the world deepening into fiscal shortages and rising debt?

Well, lets go back to History: since ever known there were the rich and the poor, the having and the having not, the oppressed and the oppressors, the systems of government ships and the economics always protected the having and suppressed the having not, however in time the meaning of the having not have risen as needed for more educated employment consequently building the middles class that responded as a demand to the rising industrial production; throughout that time was built the known marketplace of supply-to-demand economy (notice please the place of supply); the having became very much dependent on the having not for market consumption to maintain the ever rising industrial production thus the “having” became more like of an abstraction then a reality because it was not anymore having objects or even capital but ‘having” was more like participation into a marketplace by owning and reinvesting into the motion of this marketplace, the motion of the modern day Capitalism. Prompted growing demand for industrial production, freedom of business (allowing shady business practices of easy business), opening of new markets around the Globe adding demand to the local marketplace, access o capital trough public financing and excessive concentration of capital which trickled-down immersive financial power, general individual freedom and well established rule of law, all of it made economics of Capitalism very vital to bring prosperity to the North Americas, Western Europe, South Asia and Japan. Long term growth of these economies was the envy of anyone in the world: opportunities to manage good life trough education and labor, to find ones place in the society responding to ones hard work and talents, to live in freedom of speech, to vote for your governments: what a staggering success of the modern day Capitalism! More individuals in the most developed countries had access to education and possible success stories then anywhere else. Thus how Capitalism and Personal Freedom were well associated to progress, opportunities, and finally personal success so important to anyone in the world. The contrast between the oppressed people in the Soviet Block and the free successful people of the Western Countries was the highest show of the rightness for the Capitalism ever. Soviet style economics had businesses and financial system run by the governments: low productivity, shortages, wasting of reassures was a synonymic with such economics. Suppressing individual freedoms, imposing strong dictatorships and control over all was their way.

However China was a part of he system where the said above refers to in full power: mismanagement, low productivity, wasting of recourses causing technological backwardness and shortages of goods and services were well practice there. So, why China runs constantly for the last 20 years economic growth with a Communist regime still in place?

While post communist countries are up to nowhere running into high unemployment, lack of consistent growth and high national debt, and like Russia expanding the contrast division between rich and poor, Social policies in these countries are reduced to minimum, hospitals are closed and pension age is expanded, lack of opportunities caused by budgetary cuts and fiscal shortages.

While the most industrialized countries are running into high national debt, high unemployment and very low growth if any, capital and industrial production that is the majority added to their GDP outsourced and moved away to…. China.

What is wrong with this picture indeed? Actually, everything is totally wrong: the whole ideology and the consequential system of economics of Capitalism, the whole mythology created in the Last Century does not properly explain and uses economic tools to balance “demand-to-supply” on the globalizing marketplace. Let’s put it this ways: the presently used system of economics of the trickle-down Capitalism, the Global Financial System represented by the World Bank, IMF and WTO and the Western Governments’ economic polities are well very wrong, because of the Globalization supported of rapid technological innovations, of well smoothed system for Global Investment, of ever rising Productivity, and of China, India and Vietnam’s entering into the Global competition for industrial production and capital services. Which new developments are very such for the entire history of the world and thus have never before being dealt with.

What really changed is the tip-off of a “supply-to-demand” into  a “demand-to-supply” balance of a Global marketplace, prompted by the globalization, high technologies, China’s huge industrial capabilities, and the rising individual expectations worldwide by the Internet, the established European Union, and the believe of more individuals of their entitlement to a better life.

But what really makes this change even harder to avoid is the already polluted Earth in needs for prompt actions of reduction of pollution and the already exhausting Earth resources which prompts toward renewable energies and energy preservation; in both these cases continuation of the industrial growth related only profit of mostly industrial production is not feasible and even not possible. The Utopia of perpetual industrial growth for maintaining Fiscal reserves by using current Global Financial System of lending approaches is economically inconsistent and just not possible. To preserve the Earth or to change into using renewable energies is a very expensive preposition such on a profit only based  competition will not function even under very strict Global regulation that could control environmental standards everywhere less such does not exist; in a starving for fiscal reserves world compromising environmental standards is a common practice, such on a purely return on investment will not function because in many cases renewable energy sources are very expensive requiring huge investment and the pay back is slim if none.

Impressing are the attempts made by the Most Developed Countries’ Governments to curb on pollution and promote renewable energy sources, unless a closer look is taken in many almost everywhere in the poverty driven world where a single family may burn 15 m3 to keep a single room heated creating pollution as a small manufacture and cutting wood indiscriminately. Well the coal power generators are blowing pollution by the thousand tons, and the poor peasants are cutting and burning jungle to put small farms. It should be obvious that fighting pollution and expanding renewable energy sources comes after poverty is rooted out and after these technologies become economically comprehensive, but in a profit only based industrial production economics rooted into the modern day Capitalism such possibility is beyond comprehension.

To associate impractical usage of economic tools that lack flexibility in wealth distribution and redistribution, that ignore the importance Social and Infrastructural Expanses might have for balancing “demand-to-supply”, that treat economics as a “believe” and ignore needed practicality, that call for “austerity” and budgetary cuts able to hurt many families and mostly the poor and the minorities calling all of it economics and the global financial system, such policies are self-proclaimed idols lacking even common sense.

The main role of the Global Financial System is to balance Global “demand-to-supply” to avoid inflation instead of being a profit based lender as it is.

The world is not anymore appropriated by the ideologies of any, even (for very sorry) personal freedoms are becoming irrelevant for economic growth; the main and most important principle is that economic “tools” are to be used “as it comes: as it goes” so when Social and Infrastructural expanses are needed for distribution of wealth so let it be, when low interest rate loans and subsidies are needed to root-out  poverty and pollution so let it be, when Capital is needed to accomplish the above points so let it be issued by the Global Financial Institutions as far as it does not provoke inflation. In the same time when expanses and low interest rate loans are about to provoke economic turbulence action must be taken to curb on these so let it be.

To save individual liberties and freedom the economics should advance and provide people with employment opportunities, with access to the Global investment thus small investors and businesses to be able to benefit from the difference in standards of life elsewhere and profit from such, with business laws and regulation protecting them from fraud and damaging business activities that action will raise small businesses security and make them more finance-able.

The Globalization represented by China in its best uses “old” economic tools in basically new ways: it allow private ownership and business to prompt competition but at the same China puts heavy burden on Risk Management having them liable for their actions that generally differ from the West, China balance Private Business and Employment with Governmentally run Business and Employment to maintain pointed salary levels, China generally uses Social and Industrial Expenses to balance market “demand-to-supply”, China changes economic “tools” “as it comes: as it goes” adjusting to the contemporarily occurring issues: very flexibly and objectively.

Some people may argue that the constant growth of the Chinese economy is a result of the free enterprises allowed and the export to the US and EU markets and they could be right at the moment but in prospective China manage its economy under the circumstances therefore the needs at any moment would bring their practical actions. China is not in growth just because its huge marketplace, nor just because of the floating high technologies in manufacturing, nor even because of the floating capital from elsewhere but it is mostly because of the China’s pragmatic approaches in economics: the ways Chinese economy is managed is at its best.

So what about the rest of the world, if so much industrial production is moved and outsourced to China how the rest would manage their fiscal reserves and policies. The Capitalism and the existing Global Financial Structures work at its best when industrial growth is maintained with short self-adjusting recessions, because the lending system leverage on high interest rates, therefore if recession prolong and the growth (it must be mostly industrial) could much the needed to compensate the high interest rates and the accumulated trough these recessions debt then it is doomed to fail. Thus if neither recessions are any shorter nor industrial production is coming back nor industrial production would be able to be developed by many countries around the world then the current Global Financial System will not be able to handle the accumulated national debt by many countries, therefore its feasibility in the way as it works is to become and already is contra-productive indeed.

Many economists are totally opposing any major changes of the Global Financial System and how Global Business is conducted; they believe that small fiscal and monetary adjustments supported by the right governmental policies will prompt consistent Global growth and after the Most Developed Economies get out of the big hole of the last Great Recession  these will be followed by the Less Developed Economies: for these economists I would say just take a look at the last Great Recession, at China and at EU (at countries like Greece, Spain, Portugal and Ireland) and you will notice the difference this last recession was from the previous recessions in its hopelessness and debt, just take a look at the US and its deteriorating Middle Class that has not stop being reduced since the beginning of this Century for a moment, just take a look at the Earth environment being very polluted and into Earth’s exhausting recourses and then put all of this together and estimate how much economic growth is needed for that many economies to manage their fiscal reserves by not getting into general poverty, and one of the most important questions you should ask yourselves is if there exist real possibilities for industrial production that consists from the majority part of anyone GDP could be expanded under the recent condition so it can start adding enough fiscal reserves and to whom it should go first?

For more see: Market Economics by Joshua Konov.

How Economics affects Discrimination

How Economics affects Discrimination

The economics of trickle-down Capitalism has proved to the world its powers to create jobs and the consequential Middle Class of the modern day society. In times of relative economic growth with short self adjusting cycles, supported by “easy” business laws and regulations, in times of supply-driven markets this system performed fine by building and maintaining such industrial powers as US, Germany and Great Britain to succeed higher then everywhere else’s Standard of Life and reduction of poverty, and general liberalization by constant fight against discrimination because of color, religion or nationality; such liberalization was brought and was supported by consistent continues economic development. Thus how in the US from slavery a few Centuries ago President Obama was elected, thus how in the current German National Soccer Team some of the best players are from foreign descend; thus how London has become international Mega-polis; in this very developed economies the constant fight against any discrimination has risen people consciousness to higher levels when the economic conditions have given opportunities to people from different descend and background to succeed in life becoming productive members of their societies.

Such economic growth succeeded by the Most Developed Economies affected gradually the rest of the world by opening countries and markets to the ongoing globalization and by raising constant attention to the unacceptability of any discrimination: after the fall of the Berlin Wall and after China entering WTO, after the succeeded economic growth and development by China, Brazil, India and many more countries around the globe the acceptance of any discrimination as something normal has become less and less tolerable. It also became obvious that discrimination works against economic growth on a purely practical level by creating poor market conditions by destabilizing these markets by the resistance of the oppressed and by the resistance of the societies of the Most Developed Economies to accept import from places and countries that tolerate discrimination on their territories. It is obvious from an economic standpoint that for any countries to develop its economy open border trade policies from the Most Developed Economies is needed from one side access to high technologies in manufacturing and from another side access to their markets are paramount. Thus the global processes of liberalization of countries and reduction of discrimination are most definitely to continue.

However, the Great Recession of the 21^st Century had a very negative effect on the ongoing liberalization and the consequential reduction of discrimination of many countries. Because of the economic stagnation: lack of Fiscal reserves and fast shrinking National budgets the minorities that usually are in the bottom of these countries economies were greatly affected bringing waves of national sentiments to the majorities of these impoverished nations: from North to South from Easter Europe to East to West in countries like Romania, Bulgaria, Spain, and Ireland there have been less patience toward minorities and immigrants, even in countries like Nederland and Great Britain immigrants were becoming less tolerated by law or by the societies as a whole. The economic crisis has shown to people how negative effect economic conditions could have on the general liberalization from excessive nationalism and xenophobia, and even to turn back many succeeded already liberties and anti-discrimination practices: such an example are the open employment policies that numbers were either reduced or totally dismantled by many countries in the conditions of this economic dismay, other examples are the financial policies for when before the Great Recession fiscal shortages were much more tolerable and the inter-financial system in European Union worked very smoothly in time of economic growth with the change provoked by the recession such fiscal shortages exampled by Greece, Ireland, Poland and Portugal have become intolerable, thus even when the European Union established a Fund to help these countries in case of major default the accent was not their development or growth but their fiscal discipline by reducing substantially their budgets, and because the minorities and immigrants elsewhere are always on the bottom of these societies the prompted budgetary cuts first and at most affected these unprivileged lower classes of minorities and immigrants.

France Deports 130 More Roma to Romania

Bulgaria in EU | August 20, 2010, Friday, France continued with its controversial deportation of Roma migrants on Friday afternoon, when 130 passengers boarded a charter plane, bound for Romania….

Rome: Problem is Many Roma Possess Italian Citizenship “As Italy is bracing to expel from the country all European Union (EU) citizens that had violated basic requirements for living in the country, the interior minister has complained that unlike in France, many Roma have Italian citizenship.”

Gypsies and immigrants, colored and any different from the majority of individuals could be on religious or descend were becoming less tolerated and accepted because of the Great Recession; the economic consequences of the Great Recession of the 21^st Century has turned back history by the change of ongoing at the time liberalization and acceptance of difference; economic struggle has brought back not only poverty to many minorities and immigrants, but also it has brought back excessive nationalism and xenophobia to some people that were totally away from such feelings; general unemployment and economic stagnation, difficulties to meet the ends, business reduction are affecting anyone in one way or the other reducing tolerance and philanthropy; the effect economic recessions have on individuals and whole countries is very regressive indeed.

Under the pressures of the European Union to maintain low deficit Countries as Bulgaria have cut their Medical and Social expenses to the bone depriving many from basic medical and social services where such drastic cuts have affected at its most Bulgaria’s Gypsies who even before the cuts were on the bottom of the society but after these cuts they have become so impoverished that actually such conditions were not seen maybe but at the beginning of the Last Century. The lack of basic needs of food, medical help, and utilities are becoming vital for them to survive: the discrimination is not into physical violence by the majority by the economic such that came as a consequence of the Great Recession, and when these hardships affect the majority of Bulgarians in one way or another the “tools” that could take the minorities out of their current situation such as education and economic development are becoming more obscure by the day.

Therefore to talk about tight budgets and fiscal restraint is synonymous to talk about rising discrimination against minorities and immigrants.

In time of rapidly improving high technologies prompting rising productivity, fast globalization and fast industrialization of vast economies of China, India, Brazil and Vietnam the expectations of industrial development of many countries around the world may prove futile; even in most industrialized economies outsourcing of manufacturing and capital toward China may well shrink their fiscal reserves or at least reduce the size and speed of economic growth, that consequentially might devastate even farther the less developed economies fiscal reserves, that could result into rising discrimination against minorities, immigrants, and the poor overall. When at the moment industrial production adds to the majority of most economies GDP and Fiscal reserves the relation between their budgets and industrial production is direct. Such direct relation is supported and maintained by the Global Financial System of the World Bank, IMF, and WTO which system works very well in time of short cyclical global economic growth but performs very poor in time of long term recessions and shortages of demand. When lending done by the Global Financial System is smooth when lend capital is returned after short recessions and helps economies revival when industrial production has generally shifted and moved away from many economies of European Union and North America and at the same time improving technologies have reduced employment even when manufacturing employment still remains their that possibly of positive effect from high-interest lending is a delusion. Even farther, with the deepening fiscal shortages for many economies these economies ratings come down and they start borrowing on even higher interest rates. It is obvious that such “double jeopardy” Global Financial System may finally contribute for the impoverishment of many countries and markets and their demise instead of their economic development that lack of economic improvement will directly affect the issue of discrimination against minorities, immigrants and anyone different by somehow.

Another factor that affects discrimination is the rising energy prices: the diminishing quantities of Crude Oil, Natural Gas and other natural recourses has had devastating effect to the less developed economies by rising utility and transportation expenses when at the same time lack of industrialization has prompted their fiscal shortages, thus how many economies have lost their ability to maintain fiscal reserves and budget to deal with the lowest levels of their socio-economic structure where the minorities and immigrants were. Fossil Fuels are diminishing by time and these are priced on a Global marketplace, therefore, less developed economies deal with such rising prices much harder then the most developed economies do. Such Global stagnation does not affect only less developed economies but it most definitely affects the most developed too: rising crime, poverty, shrinking consumption and expanding emigration in process in less developed economies reduce export, industrial production supported by rising immigration the ground for intolerance against anything different is growing too.

The dangerous Global pollution levels ask for prompt action to use technologies for low emissions and maintain a clean environment for the Earth to survive, but these new requirements require a lot more expenditures by all countries, and because most of the renewable technologies are quite expensive and with low productivity they mostly go toward expenses then toward profitable industrial production; such technologies reduce competitiveness to even Most Developed Economies on the open global marketplace where even without it lower employment expenses in other parts are more than enough to trigger outsourcing, but the needed such expenses are totally out of reach for many less developed economies with constantly shrinking standards of life and fiscal reserves. Thus the expenses for cleaning the Earth environment will put additional pressures to the fiscal reserves and the impoverishing of minorities and immigrants will go even farther.

Putting in context all of the above a natural global growth in the conditions of currently used Global Financial System is quite improbable to reduce poverty and enhance fiscal reserves for many economies to respond in constant lack of outsourced industrial production, rising energy costs and expenditures so much needed to enhance renewable energies to protect the Earth from catastrophe. The processes of modern “post” recession very heavily alienate minorities and immigrants by establishing conditions of intolerance and xenophobia and if major changes are not adopted by the Globalizing marketplace these processes are not going to get any better.

(For more see: http://sites.google.com/site/economicsofmarket/)