Quick thoughts on globalization

I wish I had 2 good quotes to use here, one from a purely business standpoint (beauty of the market and all that) and the other from someone who just lost their job due to globalization. The stark reality of globalization is it allows us to buy things cheaper. Imagine what your fancy new iPod would cost if all the parts were American made? You might need home equity to purchase it. People who sell globalization sell it on the fact that you couldn't afford things, or you couldn't afford as many things, if we didn't have globalization, if we didn't sew underwear in China and put computers together in Pakistan or build whatever wherever it is being built.

That's probably true. My concern with globalization, and I'm generally OK with the idea within the appropriate framework, is how it is done. For example, there are number of reasons to move these jobs to lower paying markets. One is the lower cost of living, leading to lower employee salaries. That, obviously, is critical. It is also very difficult to compare cost of living between countries, even though many economists and leading publications have factors. The reason I don't buy these exactly is because many goods are cheaper in developing countries, especially basic (locally grown) fruits, vegetables, and a basic starch which every country seems to have. However, cars, iPods, TVs, radios are all generally the same price or more expensive. So the cost to survive is less, but the cost to live equally may actually be closer to the cost here in the states that is generally reported. It all depends on how much a person consumes, how much of modern consumer hysteria they embrace, that decides cost of living. Remember that we push consumption in the US, we push debt and credit cards - hell, we even push it as patriotic to spend - so we can't argue it's good for america but not for everyone else. Well, we can and we do but we shouldn't. I would argue most proponents of globalization with these statistics (our government, magazines like the economist, other major publications) are pro-globalization and open markets and, therefore, setup the rates accordingly. Ignoring this though, at it's core, it is cheaper to live in these countries.

Another reason to move overseas is tax breaks. This actually happens right now as companies play states off each other to attract factories and jobs. The state may help to build the factory or provide many years of tax breaks in order to lure a factory and thousands of jobs. It's like building a sports team a stadium because the team "brings the community together." It's welfare for super rich people who can buy sports teams worth tens or hundreds of millions of dollars. It's bullshit. Regardless, I can't argue playing countries off each other is bad if we do it in Penn and NJ, so I'll let it go. I think it should be addressed nationally, but it won't, so there isn't any hope for international law here. There are more important issues anyway.

A third issue with globalization is the difference in pollution laws. Many smaller countries do not have the laws or the enforcement in place to properly prosecute pollution mills. In fact, if they do have these laws, chances are they would not get the factory or the factory will leave. As much as our car culture and our refusal to sign the Kyoto protocol are effecting global warming, we may be doing more global damage by poisoning drinking waters and making open landfills. This may not be as drastic an issue, but it is as important. It is another argument that capitalism is brutal, it directly kills people, and America is a heartless monster that refuses to hold her citizens accountable. I am counting corporations as citizens because they have become our own aristocracy, incredibly wealthy and glorified in our papers regardless. Remember, Jack Welch from GE started as a butcher, laying off thousands of people. He retired a King. Short memories are a failure we all share. Anyway, it is my opinion that America's lack of positive leadership around the world will have as big an impact on any future events (and I think they will be violent) as any sort of religious confrontation. If you follow money to the ends of the earth, won't it be easy for someone to follow behind with a sword?

I read part of a book by a NY Times contributor (Friedman I think?) called Lexus and the Olive Tree about globalization. I couldn't finish it, I tried a few different times. He made the argument at the beginning that it is irrelevant what he thought of globalization because he couldn't stop it. Then he proceeded to write about how right it was. It is obviously right for us, we win. Is it right for other countries? It provides jobs and needed infrastructure (roads, ports, etc). But does the country win? A few jobs for miles of polluted waters? What percentage of that money really helps the country's schools or medical facilities? If we do a little tiny bit of good when we could do a lot, what does that mean? Should I be happy we aren't doing all bad? Or should we all rise up and hold ourselves more accountable for what we buy and what we allow our corporations to do in our name. You may not think it is in your name, but America itself is like a corporation selling open markets. If they destroy the world, then we will all be accountable in the eyes of our global neighbors. And we all should be. There are better frameworks we could be selling. These include allowing foreign wages to be controlled there, but holding companies to either American standards or agree to international environmental standards, as well as linking the companys profits to development/educational programs in the countries. I realize there is a lot of corruption around the world (including the US, check out accounting reports in New Orleans and Iraq's american consultants), but this would be a start in the right direction. Making money is not a goal, it's a by product of our lives. We happen to need money to live, but our limits define us human. What would you do for someone you love, or what won't you do for $100 define our character. Hiding behind corporate profits is inhumane and should be criminal. Besides, the people who do that, the "corporate leaders," really show their weaknesses as leaders and people. And for the rest of us who sit idly back and enjoy the profits of this work?

Righteous indignation might sound ok in a blog, but am I willing to pay $600 for my next iPod? Or $24 for underwear? Do I do everything I can do to stop it and stop supporting it? Everything begins internally, everything begins by looking in the mirror. "ooh, nice haircut" said the author as he looked in the mirror. What do I see in the mirror? Is it enough?