i have been reading thomas friedman's 'the world is flat' and let me tell you- it is well worth slogging through. it has inspired me to do some digging on my own into this issue- and to think about the implications it is having on our national and world wide system. i am also delving into how this will effect politics- and policies here in america- because, as everyone knows, if it is one thing i am passionate about, it is politics :) onward....
say the word globilization and you get immediate responses- whether it be glazed eyes or vehement denounciations of the developing world. i really had no idea what exactly it meant- so i decided to get involved in finding out. my goal in this first installment is to introduce the topic and explore its meanings- and how it relates to what is currently going on in america today.
according to my good friend, wikipedia, globalization is:
"The International Monetary Fund defines Globalization (or globalisation) as “the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services, free international capital flows, and more rapid and widespread diffusion of technology”. Meanwhile, The International Forum on Globalization defines it as “the present worldwide drive toward a globalized economic system dominated by supranational corporate trade and banking institutions that are not accountable to democratic processes or national governments.”
the 1990's brought rapid expansion of technology, especially in the realm of internet capability and software, etc., and we all know about the dot.com bust. well, that was actually a blessing in disguise because life on the cheap as we americans have come to love it- was a result of globalization. yes, there wouldn't be nearly as many dollar stores without it. we hear an awful lot about india and china when people complain about losing jobs- so let's take a quick look at them too.
outsourcing- that is where india comes in. many of our entry level jobs and grunt work is being outsourced to be done in india. think call center jobs, basic tax return filing, data entry, etc. those are the kinds of jobs we are losing. not for nothing- but why are we so upset about losing those kinds of jobs when we are too good to do the next rung down- and hire illegals to do them? we are not currently outsourcing the higher end specialty jobs- just the grunt work because the indian folks work for less. we outsource different parts of projects to different areas of expertise and then integrate them here.
offshoring- offshoring is where china has played a role. that is moving entire companies overseas to enjoy cheaper labor, lower taxes, subsidized energy and lower health care costs. companies also move to another country if they want to take advantage of offering services to that market without the hassle of bureaucracy and trade issues.
what do india and china have that we don't and why are these types of jobs-manufacturing, entry level, research oriented jobs- moving outside of the us? well, what struck me the most was the description of the people. india and china educate their population in math, science, computer programming, etc. even though they are not the economic juggernaut that the us has been- they continued to educate their population. the other thing that struck me was the drive that these folks have. they are hungry to learn more and create more innovative technology and jobs.
here in america, we are complaining that our cushy, well paying manufacturing or 'suit' jobs are leaving because we want to do a minimum of work and reap incredible benefits. we don't want to change our health care system- but that is a large part of what the costs are that drive companies into offshoring. we have become a nation who, as a whole, has become complacent and used to a certain lifestyle. we are seeing this in our current political scene- we have politicians who are driven by the status quo. one only has to look at either side's platform and see the same tired mantras- social security, medicare, looking for manufacturers or companies who will stay in our area, etc..... we have a population that is being undereducated by our education system as a whole- from grade school up through college. our young people are not encouraged to learn science, math, computers, etc- because 'it's boring' or because of creationist views.
here's the deal- within the next 7 to 10 years the eastern european bloc, china, india, indonesia, etc will be opening up and exploding with potential employees. that's billions of folks competing for jobs that used to be just ours. we cannot expect to continue in the same vein that has been around since the cold war- where the government takes care of regulating trade and jobs and corportations. individuals will have the power, through the internet, to dictate the path of technology(open source softwares, technology), job markets, etc. our current politicians- the ones in power and the ones who want power- want to maintain the status quo- want to hold on to their power. right now it happens to be the western world- us, canada, europe, australia, etc. they are not about to let the developing world take that away- and i believe that that is part of the erosion of civil liberties we are seeing today. it has less to do with terrorism and more to do with maintaining power. if you take away the internet- or you monitor it in order to dispel dissent- you are tapping an important tool. here in the us- we have a great number of the world's databases and servers. it is food for thought.
let me end this quickie with a quote from friedman's book:
'rajesh rao, founder and ceo of dhurva interactive, a small indian game company based in bangalore, "it's not about ruling anybody. that's the point. there is nobody to rule anymore. it's about how you can create a great opportunity for yourself and hold on to that or keep creating new opportunities where you can thrive. i think today that rule is about efficiency, it's about collaboration and it is about competitiveness and it is about being a player. it is about staying sharp and being in the game... the world is a football field now and you've got to be sharp to be on the team which plays on that field. if you're not good enough, you're going to be sitting and watching the game. that's all." '
we can't afford to go back in time to when america was a superpower. the world is a smaller place and as technology moves ahead- and it is moving quickly- we need to be at the forefront of innovation. we need to be leading the way- not moving backwards to the fifties. there is no reason to be left out- but we can't rely on politicians who want to hold on to their power, and indeed relevency, in the modern age.
12 comments:
OK Betmo, Here's some fodder for your project. Do google search for this:
NAFTA Superhighway
I was led to this site by a blog entitled "One Pissed Off Veteran" His site can be found at :
http://opovet.blogspot.com
Global thinking has it's place. It seems that since it is profit driven, and profit=money, and money is power and power corrupts, that Global thinking in this realm will leave a lot of bodies behind. The poor will be poorer, the sick will not heal.
Those that honor the Great Earth Mother and live simply will always come out ahead spiritually. But it will be how we view those that possess less that will dictate our own idea of good versus bad.
addendum for t.l. stanley........
A bright picture you paint as you look at America.
Yes, it is true that workers in China and India will do the same work cheaper. And the last part of that paragraph says it all. Big business wants to reduce cost and increase profit.
You then state that our standard of living will decrease and out middle class will be hard pressed to maintain a comfortable life.
As I keep reading, I believe you to say this is OK because we helped immigrants overcome poverty in the past.
You sound like the big Belgian horse in Orwell's "Animal Farm". That is that all will be Ok because we have a meal tonight.
A strong Nation does all the things you mention AND takes care of it's own citizens.
Our current administartion and others before this one have been slowly eating away at our so-called "democratic institutions". And Judeo-Christians did not alone help overcome poverty. It takes people, not just one sect. A sect, I might add, that for the most part, passes judgement as they think Christ might have.
No sir, I disagree with what you say.
Betmo, after more thought on this and re-reading your post, I feel that it's not just low end jobs we are losing to these other countries. It's not hiring others to do the jobs because no-one is willing to work them here in the USA.
Our small town would love to have a call center operation or an office that is a clearing house for taxes as you mention. The place is filled with empty buildings, storefronts with no tenants to open a business and put people to work.
If India is willing to get the work and do it for less than the ridiculous minimum wage that is offered by law here in America, what does that tell you about the lifestyle of the East Indian people?
Why should it be Ok for us to hire people at a low wage that keeps thyem in poverty just because they are in another country. Could this be one of the reasons other countries hate us?
Corporations can do well by investing in America. After all, we're such a great country and filled with wonderful people, aren't we?
Let the people decide if they want the jobs is what I say. And I'll quote Elwood Blues if I may:
"Let's forget the Marshall plan that says we have to police force the world and stay home for the next ten years."
To "play" globally would be a beautiful thing. But not when the greedy corporation rules apply and the bottom line is god to the players.
first- america is a great country and i don't think that it will go to hell in a hand basket because we are losing lower end jobs. yes, we as a people are resilient. what we have to do it to get out of the 'manufacturing' mindset and be innovative and creative. it is not going to be enough to get out of bed and go to a mindless job making widgets anymore- those jobs are gone. my point is- we have to truly educate our population in order to compete on a global scale. like it or not- international corportations have levelled the playing field to the whole world and we cannot afford to sit back and whine and 'hope' that we can get lockheed martin to come in and make jobs for our areas( i say that because that is what happened here in owego, ny. we have lockheed but hey- guess what? no engineers so they had to import them from other places). my other point is- we have a lot of folks who aren't engineers or other high end specialty areas- and that is where we have to go. we have the technology here and the brainpower- we have the education- we do not have the will as yet.
like it or not- america has to change the way we think. we can compete globally- we always have- but we have to start encouraging the math/science fields and higher end jobs. we can't afford to rest on our laurels. gone are the days of living large with a simple job. ibm has moved to outsourcing and offshoring period.
Fascinating post and comments. British manufacturing is all but dead as a consequence of globalisation. We just can't compete with China and the Far East. The UK is largely a service economy these days. There does seem to be a move towards value-added small scale manufacturing which does find a market.
Globalisation as means for the world to get smaller, to promote international understanding etc is positive. Globalisation from an economics point of view is probably unsustainable in the long term. Environmental pressures are going to return us to much more local economies over time.
I wonder why the judeo-christians who ended absolute poverty for so many Europeans forgot Pine Ridge in South Dakota. And I wonder how much lower their standard of living will drop as an inevitable part of the global economy.
Make no mistake. I did state that I disagreed with one of the previous writers, and that previous writer claimed a love for America. It certainly could be construed as not loving my country by the rhetoric involved.
Make that assumption if you must. But to clarify, I love my country dearly, but can't stand much of what my government does these days.
Fascinating posting and comments. There is plenty of subjectivity in both the sources of information and the interpretation of such that it really is demanding to gain a semblance of objectivity in the theme of Betmo's posting.
I have to chew on this a little more before i can add anything,...save this.
There have already been cases of companies, who have outsourced to India, for the increased profit margin percentages, that over a period of 6 to 8 years have seen those margins decrease. The reason? Indians (as we have noted) are not stupid. They are fully aware of their place in the economic totem pole and have a bait-and-swich matra that is slowly making eyebrows rise up in the american business sector.
Quick example (and I do a fictitious one as I am entailing to reaseach a few real live ones that can make my point):
Company A moves its customer relations or tech suppport to India. Over time, the indian employess, fully knowing their wealth and value to the host American company slowly (but surely) demands more salaries, more health care, more of what we deem "du joir" in the American lexicon of work benefits. Over a period of a few years those profit margins (once the sole reason for outsourcing in the first place) are now not as enticing and it becomes a political and financial option for the noted Company to consider moving BACK to a neighborhood in America where the labor is cheaper than the trend is in their indian outpost.
I will get a few examples for you to buttress my comment, but the bottom line is that water will always find its level. There will come a time (if the foces of glabalization are left to their natural economic law of things)when the tide will roll back in just as hard as it rolled out.
Adam Smith was very prophetic in "the wealth of nations". Free markets have a way of leveling out the market-field no matter what humanity does to make it do otherwise.
Great post Betmo, my brain cookin'
truth-pain.....Maybe this example is true to life. I mean, how can some of this sort of thing not exist?
If India was our Southern border, would we not want them to immigrate and work these beloved jobs that the corporations tell us no American wants?
Why is it Ok to send our jobs away, but it is not Ok to have Latin people come here to work? Double standard as I see it. Money in charge as always.
its good to talk in depth about these issues.Im glad to have read all ur posts but i got a few questions of my own now:
1. why are we thinking as consumers
instead of producers?
as consumers we need rely on corporations and political entities to decide wats best for us.
to decide for us how to live.
as producers,witch can only be aquired thru soveriegnty, we can create our own way of life and not have to rely on the dollar,rfid chips,and the three branches of govt to take care of us like infants.
problems are good to talk about but arent solutions even better?
from the following site i got good info under the table and have discovered a energy source tht runs off water(witch i own) sounds random, but im trying to say tht solutions are out there; just gotta find em:
soveriegnwithoutsubjects.com
freedom to fascism.com
ps: dont just think im a random guy saying crap, im just a random guy who has land crops and a field in colorado and am doing just fine
....
with out the system!:D
anonymous here again, if i came off snobbish sorry.=[ just a problem im trying to work on.
thx guys, hope to hear from u soon
anon- i wrote this post quite some time ago- so much has changed in my thinking and learning process since. you are correct- we should be thinking more self sufficiency and producing rather than consume, consume, consume. unfortunately, consuming has been conditioned in the american psyche for a couple of generations now. the more folks consume- the more they are enslaved by the system. we are a nation of consumer addicts.
however, i am beginning to believe that none of this really matters anyway- because we- as a species- are destroying the planet we live on and are making it inhospitable to life. our water is polluted and drying up- our oceans are dying and filled with garbage- and we have genetically modified our fruits and veggies as well as our meat. so- really- is the end so very terrible? we have brought this on ourselves and once we are gone- perhaps life will start anew on this planet.
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