Globalization and Consumer Protection

In the system of trickle-down capitalism, consumer protection is counterproductive: along with business taxation, the strict business laws, and environmental protection laws. To succeed quick economic growth a market should lower weight on businesses and investors. The most developed economies under the pressure of democratically elected officials and the public opinion have developed stricter than the developing and undeveloped economies consumer protection laws: entailed by a constant struggle between lobbyists and public pressure. In some developing economies, consumer protection is consciously avoided whereas in undeveloped such it is ignored all together to attract foreign investors and large transnational corporations.

For years the developed economies and their Central Banks, and the international financial institutions such as WTO and IMF, ignored the subject of promoting strict consumer protection laws to the rest of the world with the very simple idea to let the transnational corporation roar free that finally should have prompted global economic growth. However, the ongoing Globalization and rising Productivity, the Transnationals the Chinese Industrialization, the Internet, and the outsourcing and moving of Industrial Production have brought a new global market of close economic intercorrelation, and of a tipping off point of global industrial overproduction limiting the ability of many developed and developing countries to manage the necessarily for their fiscal stability economic growth, thus the global economy has come from a pro-supply factor to rule economics to a pro-equilibrium on the demand side factor. The weak consumer protection laws was a market i.e. an economic agent that could prompt fast economic growth, which market agent is becoming counterproductive under these new global market conditions, whereas in the opposite an enhanced strict consumer protection laws’ market agent would bring more employment to a market i.e. economy and globally so. This change of values was proved by the widespread indebtedness of many developed, developing and undeveloped economies, which are straggling to keep their rising social and infrastructural expenses with their under-performing economic structures: the inequality, the deteriorating middle class, the increasing environmental pollution particularly by the undeveloped and some developing markets where the use of fossil fuels and old cars is substantial. The weak consumer protection laws are supply related while the new problems are lack of demand related, whereas the struggling to keep adequate employment markets is pro-supply economics.

The consumer protection laws are demand related that will improve the quality of goods and services, cutting on officials and corporate managements’ corruption and fraud by giving to the consumers’ rights and voice. It will press businesses to carry out more responsible products and services development and promotion. It will boost the goods and services quality that will require more R&D and therefore more educated employment. On a global scale, it will cut down on white collar crime: human rights violations. It finally will bring economic growth based on natural market forces. The quantitative supply economics of limited-mostly-national marketplaces and lower productivity of still undeveloped technologies evolved into a quality demand economics of globalized marketplace and rising productivity of high technologies, therefore, the pro-growth system boosted by lack of consumer protection laws must change to a pro-market development one boosted by an enhanced consumer protection laws that will unify the globalized marketplace under similar rules for business, quality and the rule of law; the highly sophisticated and succeeded by the most-developed economies achievements will apply to the rest of the world in their best bringing business and social improvement.

By Joshua Ioji Konov 2014