posted on Apr, 15 2005 @ 05:24 PM
Global economy, Global markets, what does it all mean to America?
I guess the novel debate over the global economic shift and the outsourcing of labor from America has worn off and has become no longer a salable
story for the news media. It just doesn't seem to be selling enough cars, fast food, or beer anymore. What with things like the Michael Jackson
trial, Terry Schiavo, and another dead Pope, who cares about the global economy?
Does anyone have the answer to the question: Why is America outsourcing its labor?
My mother contests to no end that the reason is so that manufacturing corporations can save a little and increase profits in the short term by cutting
labor costs. And sure, on initial inspection, that would certainly be a valid and obvious deduction.
More than that, however, is the need for corporations to expand and create new markets. Let's face it, why would a car manufacturer spend huge
amounts of money to try to sell a new car to a market that already has more than 2 already parked in their garage? Especially when there are about 6
billion people out there who have no cars?
No, the outsourcing of labor is the attempt to create new markets around the world, so that there won't be any sales involved once these previously
downtrodden peoples of the world have decent paychecks. Why try to sell an American or a Brit or a German the newest and most ringtonest cellphone
when there sit warehouses full of old StarTacs that no one else wants? Corporations could reduce their inventories quick if only someone else in the
world had a paycheck to buy into a year mobile contract with.
And they could sell these cellphones for ten dollars. Ten dollars is more than the absolutely nothing that an American would be willing to pay for
Conservative Republicans will cry holy murder when anyone mentions the words 'distribution of wealth', but it is the large corporations that support
their agendas that are distributing it. And well they should, because it is the only way to ensure their survival. Markets must expand, and economies
must grow in order for business to survive.
Unfortunately, the obvious result of this attempt to create and expand markets into the second and third world is also the expansion of the rate at
which we consume valuable and scarce commodities and resources.
Capitalism will fail. Any system that requires constant growth to survive, but is based on a limited amount of resources will eventually collapse on
And when it does, things will be bad for a time. Hopefully then we will have learned.