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

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About Joshua Ioji Konov
email joshua.konov@gmail.com twitter joshuak2077

3 Responses to How Globalization affects Economics

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