What is globalization? Well a quick search for that question returns the following top answers.
“Globalization is the spread of products, technology, information, and jobs across national borders and cultures. In economic terms, it describes an interdependence of nations around the globe fostered through free trade.” From investopedia
“the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets.” From Merriam-Webster
“Globalization is a term used to describe how trade and technology have made the world into a more connected and interdependent place. Globalization also captures in its scope the economic and social changes that have come about as a result. It may be pictured as the threads of an immense spider web formed over millennia, with the number and reach of these threads increasing over time. People, money, material goods, ideas, and even disease and devastation have traveled these silken strands, and have done so in greater numbers and with greater speed than ever in the present age.” From National Geographic
“Globalization is an elimination of barriers to trade, communication, and cultural exchange. The theory behind globalization is that worldwide openness will promote the inherent wealth of all nations.’ From Thoughtco
“In 2000, the International Monetary Fund (IMF) identified four basic aspects of globalization: trade and transactions, capital and investment movements, migration and movement of people, and the dissemination of knowledge.” From Wikipedia
Sounds okay, right? I am a fan of capitalism and the free exchange of ideas and culture and promoting the wealth of all nations. What could be bad about it? I asked myself that question and finally I found the answer in this article.
This was the missing piece of the puzzle. It finally all came together in my mind, all the stuff I’ve been reading up until now.
So what is so BAD about globalization of the economy? Let’s just imagine that you work for a corporation that has a headquarters or factory in the United States. They hired you to do a job at a certain salary. One day you came to work and found out that you no longer had a job because the company had moved it’s headquarters to another country, maybe India or Mexico. Now they are going to hire people in that country at half the pay that you were getting. And all the people who worked in the U.S. are now looking for a new job. When you go looking for a new job, you discover that you cannot find a job at the salary you were making because employers have so many people to choose from, they can pay less.
This is the essence of the problem of globalization. It causes job loss, depresses wages, and will eventually lead to the following: the rich who own the corporations getting richer and the workers becoming poorer. This will lead eventually to the end game of workers being no more than slaves dependent on the government or a company that has no incentive whatsoever to treat employees fairly. And the supposed world prosperity will be for a small segment of the world.
This leads to the question, is globalization the same as capitalism? I would say no, because capitalism assumes a limited labor market that is controlled by supply and demand. But if the supply of workers is high, thanks to immigration and people desperate for jobs, and eventually with automation and AI added to the workforce, then the price of labor will be unfairly low. The price of valuable goods and services will still be controlled by supply and demand. We will end up with massive unemployment and a huge poverty class if we continue on this course. We will get to the point that the people with the money and resources will have no need for very many high paid employees. Here is a pretty depressing list. https://www.bls.gov/ooh/most-new-jobs.htm
Capitalism is just like communism or socialism in that it cannot work in every condition. Communism works somewhat if you have strict control over people’s rights. Socialism works if you have a population willing to give a large part of their paycheck to the government to be redistributed. Capitalism only works if you have fair laws, freedom and capital, and there is a competition for workers. If there are too many workers for the available jobs, the corporations will hold all the power to set wages. If there is not enough product , then prices will be too high. And regulations can be used to stifle competition.
Monopolies are a corruption of capitalism. They can lead to price-fixing and less choice for consumers. Mega companies can afford to sell at prices that make it impossible for small companies to compete. This may sound good for consumers, but it’s bad for freedom. This creates an economy controlled not by the people, but by the owners of the corporations. These same corporations, and the banks who control the money become more powerful than governments. There are also many non-governmental organizations that have so much money that they have the power of a government, such as the World Bank, IMF, and the UN.
Update 2022: Thanks to the Covid pandemic and the lockdowns, and the Russia/Ukraine war, the world is now experiencing a lack of workers, a supply problem, a worldwide recession, and a very high inflation rate. Globalization made the supply problem much worse. Dependence on imported goods by America resulted on empty stores shelves and a lack of resources for American factories and businesses. Countries are struggling with an energy crisis brought on by policies that support the climate agenda.
Globalization is brought on by customers, not corporations. China would not have risen to power if it wasn’t for western consumerism. China is the result of our constant dependence on luxury and convenience.
What one must reckon with is that no matter what sacrifices one attempts to make, it is already and has been too late to turn around. This has been taking place since the end of WW1 with the League of Nations.
One cannot control the weather just as one cannot control the people of the earth.
Globalization, the term is a way to place blame. Our borders, our economy, our very way of life depend on globalization.
What would Christmas be like without China? Who is willing to make their own children suffer Christmas without any presents that were made in China? What would the New Year and the 4th of July look or feel like without Chinese made fireworks? How would anyone go to school, apply for a job or even communicate without Chinese made computing and communication devices?
How does one completely separate themselves and their family from the world, while still expecting their children to function normally?
I get what your conveying, but the fact of the matter is, is this is the way of the world. You cannot stop it, all you can do is understand it and how it came to be.
We are and always have been replaceable. That is why it is incumbent upon the individual to realize that time is of the essence. Make every decision count and do whatever you can to remain competitive and valuable for employment. Be an asset not a liability.
Trade is not a bad thing . Giving up sovereign national control is . China does not intend to do that and neither should we .
And so the world turns and the ebb and flow of nations will continue to evolve. “We” gave up sovereign national control long ago, that it has become impossible to be an isolationist nation.
“We” give up sovereign national control every time we swipe our debit card. “We” vote with our dollars, whether we acknowledge it or not.
How does a nation maintain the high quality of life and maintain the citizens expectation of affordable goods and services if it does not seek lower manufacturing and production costs elsewhere?
How does the dollar continue to lose value yet sales and coupons continue to exist? How does life remain somewhat affordable and tolerable in America without foreign labor?
One cannot have their cake and eat it too.
It’s either one or the other and who should be the ultimate decider?
Realize that what we discuss is more about point of view and not about the fact of the matter. Regardless of what happens, do what you can, while you can to provide for your family. In the end, that’s all anyone can do, regardless of class.
Our world is an illusion. Our needs never change. Your family is the priority, regardless of what is happening around you. Remain focused on your family and you will surprised at what you can accomplish for them.
We are on the same page. But I think there has to be a limit to the outsourcing and demanding cheaper and cheaper labor sources and junk products. But there won’t be until it’s too late.
We cannot control the weather nor the environment for that matter. Just as we cannot control the emotions and cognitive abilities of other people. All we can do, is act as individuals and try to make the appropriate decisions for our family.
Lol! When did you get so existential? This article is not about emotions. It’s simply an observation of what is happening.
I agree with many of your observations and feel helpless to change this locomotive heading toward destruction. Globalization has also, obviously, shown how quickly diseases can spread.
I’m especially bothered by people’s hypocritical behaviors in saying American working conditions and environmental practices need to be a certain level -then purchasing from companies whose goods are made somewhere without those standards and practices because the goods are cheaper.
People who demand those things (higher standards) are usually the ones who can afford to pay more. It’s a divided nation between people with disposable income and those without it. We live in a nation where debt and greed are encouraged. And they are exporting THAT to the world. Those of us who are believers are told to be content with what we have, be generous, live humbly, be fair and just. The Mosaic law prohibits charging usury! And every seven years debt was to be discharged.
Great point, and one I meant to make as well. People are not able to afford these expensive things and this higher cost of living. They are eschewing family life, working jobs they leave over and over because the job didn’t ‘fulfill’ them, and being granted a ton of debt. That includes useless degrees they took out loans for. It’s a mess!
Spoiled is the best way I can explain it . No gratitude for all that God has done . Same thing happened to the Jews .
Yes! And entitled.
The trick (for me) as a believer is even though I am acutely aware of most of what you’ve written about here, not to let it suck the joy and peace out of me. Heavy duty stuff for sure! DM
The good thing is that the plan is nowhere near as straightforward as it sounds. They have a goal for the world, but they are dealing with human beings who don’t always respond the way they expect. 😀 And they forget that GOD is in control! Hallelujah!
The key is to keep this all in perspective. Father has a time table for the end of the age, and it will come according to his plan. For jobs or income, westerners have been spoiled for many years by the blessings brought on by obedience to God’s commands. See Jonathan Cahn’s wise advice to President Biden here: https://www.youtube.com/watch?v=hrCtoQUXnmc
Jesus’ instructions, as you so aptly put in other blogs, is to BE READY, at any time. Stay in the Word.
Blessings on you, and see you in Heaven, if not before.
Thank you. Good video. If only Biden was aware of his own actions, but I don’t think he is.
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