Altho there are, and will be more, displacements as we head into globalization, I'm in agreement with Robert Furman.
Not only does globalization increase the standard of living of the poor-- a good objective in itself--it is creating markets for developed countries. Indeed, the recent positive news from Intel is an example. Developing counties are buying Intel's chips, and will buy Dell's computers. Since the days of slavery are over, the very low wages given by many manufacturers are still vastly prefered to no work in the developing countries. I have visited factories in Rajastan,India where the basic pay is a dollar a day, and there were people lined up for the jobs.
Furthermore, globalization is checking inflation and making products better. Competition being so fierce, all manufacturers cannot do what US automakers did for a generation-- sell us pre-obsolescent crapolla. The Japanese came in and now the US does make a better car. When our cars are better value than others, we will regain deservedly lost market share.
Also, curbing inflation leads to more disposable income, and hence better vacations etc. When I was a kid, foreign tourists hardly exist. Go to Bloomingdales or Bergdorf now. They couldn't exist without the foreign customers.
Given the US's very high productivity level, we should be able to compete. However, we are inhibited by peripheral costs that we may choose to pay. Environmental concerns (many irrational IMO), huge medical costs, and high defense spending--and debt--take away from our ability to compete.
Europe has all the problems we have and more. Their social programs inhibit hiring. E.g., a friend owns a factory in Portugal and he cannot lay anyone off without huge benefits. Therefore, he is reluctant to hire. Germany and other countries are beginning to address these issues.
Also, as Bob stated, do we want to live in a world with the tension created by massive disparities in wealth?
fred |
