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 this product.

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 itself.

And when it does, things will be bad for a time. Hopefully then we will have learned.

DeltaChaos

Yeah, a gratuitous, selfish bump. I don't know why people no longer consider this issue important. Is it because it's not in the news anymore?

Or is it just TOO MUCH READING TO BOTHER WITH?

The global and free market econmys (if theres a differnce) have been around for 20 years or so countries that failed to adoped are in econmic shambels.
It was a rough transition often unemployment rosed as the likes of factorys closed because they couldnt compete with cheap imports.

In order to compete in the global econmy governments need to encourge free enterpise, keep taxs at a min and ensure that the government is kept as small as possable and dosnt impose morals on society.

Quality education and health care is the key to ensure that countries like the USA have future propsperity.

Wealth shouldnt be redistrubuted by the governmnent people should have the freedom to spend there own money in the free market.

NZ fell into the trap of lowing wages in order to make the countrie competive in the free market perhaps the US fell into trap. Here in NZ they need to raise the min wage to $11 so people can afford a better quality of life.

Just as the state and reglion should remain seperate corperations and government should remain seperate. The government should limted corpate profits nor should governments be pupperts.


[edit on 9-5-2005 by xpert11]

[edit on 9-5-2005 by xpert11]