Globalization and its Consequences

I read the paper every day and I listen to broadcast news every evening.  Whether it is local news or world news 90 percent of the time it is negative. The subject matter of the news consistently deals with human beings or groups of human beings perpetrating an injustice on another human being or group. Just to list a few of these crimes being committed against one another are kidnapping, physical and mental abuse, murder, misuse of power, terrorism, political scandal, corporate scandal, church scandal, and on and on. I wonder how all of these crimes and negative news reporting affects us. Globally crimes against one another has increased dramatically over the last 25 to 30 years. 

This brings me to the subject question I present to the readers of this writing; Is there a connection between globalization and societies unrest and has it contributed to a more unruly and inhumane world society in which peaceful coexistence cannot prevail?  Let us take a look at what has happened.  A majority of our world leaders prescribe to a globalization of trade. The economic theories which support a globalization of trade is based upon basic supply and demand principles of cheaply produced products and services with a minimal percent of cost attributable to labor. Keep in mind that labor costs plus benefits can range from 45 to 85 percent of the cost to produce a product or provide a service (Education at the higher end). Since the 80’s corporations have been shifting their manufacturing and services to those human resource markets where there is an abundance of labor. This occurrence was a result of products and services produced in a national market no longer provided enough corporate profits and that national borders confined the corporations to limited demand for their products and services. The political leaders of all nations at the behest of Domestic and International Corporations had to enter into international trade agreements and national alliances whereby products produced in one nation can freely flow to other nations without tariff; hence agreements such as NAFTA and the creation of the European Union. The competitiveness for profits changed the balance of power in the world. The United States once the greatest economic power in the world had found itself on a playing field with reduced advantage. The solution prescribed began in the 80’s; produce products and provide services in cheap labor markets, legislate trade agreements beneficail to corporations, and begin the outsourcing of labor to cheap labor markets. This accelerated with the technological revolution in the 90’s. If you don’t believe me, when you shop at Walmart check the manufacturers country of origin, or when you call a customer service number find out what country the representative is working out of. I coined the phrase Downsizing of American Payroll in 1989; this reduction of compensation and recycling of American employees was necessary to compete with international labor markets whose salaries were substantially below the U.S. labor market. It has been called “War on The Middle Class” by Lou Dobbs of CNN recently in his new book; I believe it to be more serious than that. Employees who were downsized found themselves in U.S. labor markets where the same paying jobs no longer existed.  Employees had one of two options take a similar job at less money or start a new profession at a lower salary. A lose lose situation. I would like to point out this process includes the equaliztion of the american middle class to the middle class worldwide at much lower american compensation levels. The reports on salaries, wages, and benefits substantiate my comments. The Employee Cost Index in 2001 increased 16.2%, in 2005 it increased 12.2%, a decline of 20% over 5 years. Adding to the dismal wage picture is the increase in benefit costs 19.5 % in 2001 and 20.4 in 2005 a 4.6 % increase in 5 years which are included in the Employee Cost Index. Wages and salaries rate of increase have declined 32% over the last five years. Statistics obtained at U.S. Department of Labor, Bureau of Labor and Statistics. The continuation of these trends in the United States will result in the elimination of the middle class. Expendable income will decline to its minimum as a result in the increasing cost to live. Health Insurance, Home Insurance, Property Taxes will become the major costs if not already in our personal budgets. The poor population will grow dramatically. Government Social Programs with be bankrupt and a greater burdon put on the taxpayer. The middle class who pay the governments deficits won’t exsist.

 The unbalanced distribution of wealth within our world society has caused the masses to react. In the world today the United States and Western societies are being blamed for everything that is wrong in our world. Western societies have permitted the deterioration of underdeveloped nations socioeconomical systems by allowing corrupt rulers to pillage the nartional resources of the region, and therefore the reciprocator of their hatred.  People kill people in the name of religion, of course this isn’t new in history, but I believe that this resurgence of religious wars has been brought about by the globalization of trade, and the redistribution of wealth worldwide. Anti Western organizations, militia’s, terrorists groups, and countries use the media to exploit the masses. The local media has a major influence on its masses. The media’s first purpose is to report the facts yet it has transgressed to form opinions in the minds of its viewers at the request of local governments. Call it brainwashing if you’d like to. An example of this is Al Jazerra in the Middle East. This is a network whose main purpose is to slant information against western societies and to instigate anger against anything that is of western origin. Combine this with the Iraq War and what has developed is the objective of every non-western nation to seek revenge against western civilization. Media influence does not only apply to non-western nations. Our Western Media is used to influence where we shop, what we buy, how we eat, and yes, how we vote.

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