For decades business AND governments have operated based on several very flawed assumptions... 1.) that supply side economics was the answer to all the economic and fiscal issues, 2.) that continually unchecked growth was infinitely sustainable, and good for everyone, 3.) increased productivity is good for job creation, and 4.) there is no downside to a globalized marketplace. 1) You can have all the supply you want of any commodity that you desire, but unless there is an actual demand for and ability for utilization of that commodity... it aint worth a hill of beans... it simple gathers dust... 2.) unchecked growth is the actual definition of cancer... and not only is a cancerous growth not good, it isnt sustainable... left untreated it will progress to the point where it quite literally kills off the host... the very thing it needs to survive 3.) increases to productivity (getting more output with less input) is the anathema of the creation of jobs... much like poor people cut back on grocery spending (the most elastic for personal budgets) in order to pay for the rent... to keep the roof over their heads... or to pay for oil to keep warm during winter... business can replace people with machines or processes making wage rates the VERY MOST elastic component of any business... 4.) globalization is not the rising tide that raises all boats that many would have you think but by definition it is a homogenization of people, process and/or products... Since the myopic push to sign global and international trade agreements we have discovered a multitude of companies and governments conducting trade / exchanges for no other reason than for the sake of doing a deal or to be seen as players in the global (bigger) market... deals that do not make a profit or even just break-even but can result is substantial losses to all the companies involved. The concept of all commercial trade, starting with the inter-personal exchanges by village shoemakers and extending through to international trade, was primarily intended to deal with local production that periodically exceeded personal or local consumption capabilities... or to take advantage of a massive specialization of knowledge or capability... In our trickle-down, capitalistic, globalized marketplace... the only things that trickle down are wage rates, working conditions, and standards of living... and that all is occurring during a high-speed race to a very homogeneous bottom.
Posted on: Fri, 16 Jan 2015 21:35:48 +0000
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