Thursday, November 29, 2007

Granpa Graham's Corner : Globalization

I keep hearing and seeing the buzz word "globalization" but I don't know what it means. It seems to me that peoples have traded with each other for a ling time. Marco Polo, as I recall, brought stuff from the "east" along caravan routes. It is said by some that he first muttered I'd walk a mile for a camel but I personally doubt that. So what is different between "globalization" then and "globalization" now?

I am terribly deficient in economics, a course I avoided in school. However, as technology, information, communication and travel made rapid advances we continued to trade with nations throughout the world (globilization?). The U.S. became an industrialized nation and trade between nations continued.

The peoples of the world reached a point where reproduction resulted in massive numbers of people. As nations matured they began to become capable of producing goods and services for their own peoples and even to export more of their goods.

In the U.S. the succes of our industrialization resulted in raising the standard of living far beyong that of many other nations. Our technological advances allowed us to produce goods in excess of the demand in the U.S. We could continue, it seems to me, to thrive because our goods could be exported around the world. However, our cost of producing those goods exceeded the cost of similar goods produced in nations where hugh number of people labored for lower wages and lived in a different standard of living.

The federal government decided to eliminate or at least reduce poverty for U.S. citizens and our welfare system was born (another small step in becoming a socialist nation, dependent on the federal government for handouts). This system has produced a group of people who have lost their concept of responsibility and pride in independence.

Businesses, it seems to me, decided that their selling of products had peaked and they needed some way to expand and increase their profits. The federal government's effect on education has, it seems to me, dummed down our young people and is giving them poor education. Business wants to hire people but is willing to offer only lower wages, yet people can draw "welfare" and can not afford work for the low wages and continue to enjoy the benefits of our level of society.

Business, I think, looked at all the people in various parts of the world and saw a large market for their products. However, those markets were in need of methods of obtaining moneys to pay for the products business hoped to sell them. Solution, solution, enter the federal government. Business decided that there should be some way for other nations to become industrialized. This would increse employment in that nation and the monies generated could be used to buy U.S. goods. In the U.S. business would profit by selling more of its products. NAFTA (North American Free Trade Agreement), other trade agreements and SPP (Security and Prosperity Partnership of North America) were created. The agreements do not necessarily favor the U.S. Under the agreements we would have free trade between named nations. Business could move production of their products to a nation with lower labor costs and return the products for sale in the U.S. The effects on our standard of li ving are not given consideration. To help provide business with "cheap labor" the above agreements remove our borders and allow "free" migration of millions of citizens of a foreign nation. The resulting influx will destroy our society as we have come to know it. I understand Mr. Bill Gates is said to have remarked that if the government did not allow him unlimited ability to hire migrant workers he would move his plant to Canada.

So what does "globalization" mean? I think we have subverted the meaning and what we are doing is not "globalization" but we are allowing the federal government and business to destroy our sovereign nation while China, Japan and others are profiting from our ineptitude and are in position to "eat our lunch" so to speak.

Granpa Graham

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