Global Economy Concept Collapses

By Cesar F. Lumba

(Many of you have asked how you may contact our writers. Cesar Lumba’s email address is lumbacesar@gmail.com.  His facebook page is Cesar F. Lumba and his twitter hashtag is #morningcall11.  Jules Lombard’s email address is jlombard0306@gmail.com.)

A recent post in this blog, titled “There is No Global Economy” has not received as much notice as the more popular posts:  “A Proposed New American Doctrine,” “The Giant Sucking Sound and the Rise of Employnomics” and “Was President Obama Taken for a Ride…”

But the evidence that there is no global economy has become more convincing, and it is time we revisit the concept of a global economy.

If there were a world economy, we would now be seeing – after nearly six years removed from the collapse of most economies in 2008 – an accelerated convergence of the world’s economies and most economies would be marching in lockstep or near-lockstep.  This is because of the equilibrium effect that an economy experiences when its sectors retool and recalibrate.

But the U.S. economy remains strong and resilient despite its high unemployment and Germany’s, France’s, Switzerland’s, China’s, Brazil’s, the Philippines’, Indonesia’s, India’s etc. economies are apparently insulated from the continuing turmoil in most economies of the world.

If there were a global economy, most economies (sub-economies?) would now have adjusted, but that is far from the case.

We don’t have a global economy as long as western economies can inflict great harm on their target economies.  Look at what’s happening to Russia. The western economies have placed sanctions on Russia and Russia’s economy has gone into a tailspin.  If there were a global economy, this would not be possible because sanctions on Russia would adversely affect the western economies also.

From David M. Herszenhorn’s article published in the New York Times, April 16, 2014:  “While the annexation of Crimea has rocketed President Vladimir V. Putin’s approval rating to more than 80 percent, it has also contributed to a sobering downturn in Russia’s economy, which was in trouble even before the West imposed sanctions. With inflation rising, growth stagnating, the ruble and stock market plunging, and billions in capital fleeing the country for safety, the economy is teetering on the edge of recession, as the country’s minister of economic development acknowledged on Wednesday.

“Mr. Putin, who just lavished $50 billion on the Sochi Olympics, also must now absorb the costs of integrating Crimea, which economists and other experts say has its own sickly economy and expensive infrastructure needs. The economic costs have been masked by recent patriotic fervor but could soon haunt the Kremlin, as prices rise, wages stall and consumer confidence erodes.”

Mr. Putin got Crimea, but the Russian economy lost its ability to tackle its myriad economic woes.

Why do the pundits keep telling us there is a global economy?  Because the lords of industry have chosen to abandon the western economies’ workers in favor of low-cost, low-wage countries like China, India, Brazil and Mexico and have successfully justified the wholesale transfer of jobs as a natural consequence of a globalized economy.

“Hey, it’s the economy, stupid,” they seemingly tell us.

We blame the so-called global economy when the blame actually belongs to the lords of industry who manufacture in China at Chinese prices and sell in the U.S. and Europe at American and European prices.  It is greed masquerading as the profit motive that is responsible for the massive layoffs in the U.S. and European manufacturing sectors, but we are being led to believe that the culprit is the global economy.

Our sons and daughters are being told, “because of the global economy, you must learn to compete with the Chinese, the Indians, the South Koreans, etc. and therefore must do very, very well in school.”

Our kids have to do better in school, of course, but that is not the reason they no longer can find jobs in their home country.  The main culprits are outsourcing and offshoring.

At FoxConn, the world’s biggest electronics manufacturer, Chinese workers as young as 16 are employed and forced to work eighteen hours a day welding electronic parts together.  Many are contemplating suicide, some have in fact succeeded, because of the horrible working conditions. And they are grossly underpaid.

American, European and Australian industries do their manufacturing in China and some third-world countries because the cost of labor there is very low and there are no labor unions that protect the workers from exploitation.

It’s not and never was because of the boogeyman known as the “global economy.”

If American industry is pressured by Americans to bring manufacturing back to the U.S., it can be done overnight.  We have the factories here, albeit somewhat rusting from disuse, and it will be easy to retrofit the factories and even modernize many of them.

The U.S.-manufactured products will of course tend to cost more, but that’s OK because Americans will have jobs and will be able to absorb the additional costs.

The U.S. multinationals will see their U.S. profits plummet, but they will remain hugely profitable outside the U.S. because their products that are intended for international distribution will still be manufactured in China, India and other low-cost, low-wage countries.

Over the years, the same U.S. multinationals will learn to adjust their operations to allow for a greatly disparate mix of production costs in the U.S. and other countries.

This brings us back to the proposed new American doctrine.  We must insist that 51% of all products sold by multinationals in the U.S. are manufactured in the U.S.  The other 49% and products intended for international distribution can in fact continue to be manufactured outside the U.S.

If Europe, Australia, Canada, Japan and South Korea adopt a similar policy, manufacturing will head back to the fully industrialized countries and the youth in those countries will have good jobs once again.

The growth of developing countries will slow down, especially China’s and India’s, but that’s a good outcome, because the growth of those countries has come at the expense of the young people in the fully industrialized countries and the net result is a destabilization of the industrialized countries’ societies.

Here’s what we should all do.  Let’s create more noise out there.  Tell everyone you talk to that we are not going to take it anymore.  Nobody has a right to sell in the American market products that are made outside the U.S. if those products used to be made in America.  Free trade is no excuse for the wholesale abandonment of America by American multinationals.

If they want to continue selling in the lucrative American market, they must bring back some of the manufacturing we lost during the last few decades.

88 comments on “Global Economy Concept Collapses

  1. Very shortly this site will be famous among all blogging people, due to it’s
    good posts

    my blog; singing lessons online

  2. I constantly emailed this web site post page to all my friends, for the reason that if like to read it after that my contacts will too.

    my site; Las Vegas escorts (Lettie)

  3. Howdy! This post could not be written any better!
    Looking at this article reminds me of my previous roommate!
    He always kept talking about this. I’ll forward this information to him.
    Pretty sure he’s going to have a very good read.
    Thanks for sharing!

    Feel free to visit my web page – collegerecruiter.com – Harriett,

  4. Pretty nice post. I just stumbled upon your blog and wished to say that
    I have truly enjoyed browsing your blog posts. In any case I will be subscribing to your
    rss feed and I hope you write again very soon!

    Here is my web site purevolume.com (Jonas)

  5. Very quickly this website will be famous among all blog visitors, due
    to it’s nice posts

    my web page – geniux ingredients

  6. Hello to every one, for the reason that I am in fact keen of reading this web site’s post to be updated on a regular basis.
    It includes pleasant material.

  7. I got this web site from my buddy who shared
    with me on the topic of this web site and now this time I am browsing this website and
    reading very informative articles here.

    Feel free to surf to my web site … How To Look Taller

  8. Thank you for this superb write-ups. Keep sharing fantastic articles!

    Feel free to visit my weblog: best acne medicine

  9. It does this through aiding in understanding the skills, helping you to customize your ships weapons and
    equipment and earn credits faster. If you’re looking for an online mafia game,
    it is best to look elsewhere. In the past, real-time strategy games have always been those that ran on a
    single computer, and even though they did not stop when the gamer logged off ‘ they were single player games.

    Feel free to surf to my blog post :: gry online za darmo

  10. Awesome issues here. I’m very glad to see your article.
    Thank you a lot and I’m taking a look ahead to touch you.
    Will you please drop me a e-mail?

    Check out my site … Fallen Arch

  11. Because the admin of this site is working,
    no doubt very rapidly it will be well-known, due to its
    feature contents.

    my web page: Bunions

  12. Great post.

    my blog post; Bunion Pain

  13. Hi there, I check your new stuff daily. Your writing style is awesome, keep doing what you’re
    doing!

    Also visit my web-site: Flat Feet

  14. If some one wants expert view on the topic of blogging and site-building after that i propose him/her to pay a visit
    this weblog, Keep up the pleasant job.

    my web page – Foot Supination

  15. Why visitors still make use of to read news papers when in this technological world the whole thing is accessible on web?

    Here is my blog … Plantar Fasciitis

  16. Excellent web site. Lots of useful info here. I’m sending it to several pals ans also sharing in delicious.
    And certainly, thanks on your effort!

    Visit my web page – Foot Pain treatment

  17. Hi everyone, it’s my first visit at this website, and article is genuinely fruitful
    for me, keep up posting these articles.

    Feel free to visit my webpage … Broken Toe

  18. I am genuinely glad to read this weblog posts which carries lots of valuable information, thanks
    for providing such information.

    Here is my blog post; Heel Lift

  19. Every weekend i used to pay a quick visit this web site,
    as i want enjoyment, for the reason that this this web site conations actually good
    funny information too.

    my blog post … Lower Back Braces

  20. I have been exploring for a bit for any high quality articles or blog
    posts on this sort of space . Exploring in Yahoo I
    eventually stumbled upon this site. Studying this info So i am satisfied
    to exhibit that I’ve a very good uncanny feeling I discovered just what I needed.
    I such a lot undoubtedly will make certain to don?t
    disregard this web site and give it a look regularly.

    Feel free to visit my page … Fallen Foot Arches

  21. I used to be recommended this website by my cousin. I
    am no longer sure whether this post is written by him as nobody else
    recognise such targeted approximately my trouble. You’re wonderful!
    Thank you!

  22. The money grant will be given for your requirements based
    on your own repaying ability Bill Reid that final statement may be considerably confusing, so let me clarify.

  23. Having read this I believed it was extremely informative. I
    appreciate you taking the time and effort to put this short article together.
    I once again find myself personally spending way too much time both
    reading and leaving comments. But so what, it was still worthwhile!

    Look into my blog Broken Toe

  24. I’d like to find out more? I’d love to find out some additional
    information.

  25. My developer is trying to convince me to move to .net from PHP.
    I have always disliked the idea because of the costs.
    But he’s tryiong none the less. I’ve been using WordPress on a number of
    websites for about a year and am nervous about switching to another platform.

    I have heard very good things about blogengine.net.
    Is there a way I can transfer all my wordpress posts into it?
    Any help would be really appreciated!

    my page – Flat Feet

  26. That is really interesting, You’re an excessively professional blogger.
    I have joined your feed and look ahead to in search of
    more of your magnificent post. Also, I have shared your site
    in my social networks

    Also visit my site – Broken Toe

  27. Admiring the commitment you put into your site and detailed information you provide.
    It’s awesome to come across a blog every once in a while that isn’t the same unwanted rehashed material.

    Fantastic read! I’ve bookmarked your site and I’m including
    your RSS feeds to my Google account.

    My weblog Child Growth

  28. Thank you a lot for sharing this with all folks you actually
    know what you are talking approximately!
    Bookmarked. Please additionally discuss with my website =).

    We can have a hyperlink change agreement among us

    Feel free to visit my web site: Leg Lengthening

  29. Good way of telling, and pleasant article to get facts on the topic of my presentation subject matter, which i am going to convey
    in college.

    Also visit my web site :: Child Growth

  30. I do trust all the ideas you’ve introduced on your post.
    They’re really convincing and can definitely work.
    Still, the posts are very quick for starters. Could you please prolong them a bit from subsequent time?

    Thanks for the post.

    my webpage: Child Growth

  31. I know this website offers quality based articles and extra stuff, is there any other web site which presents these kinds of stuff in quality?

    My site Get Taller

  32. I absolutely love your blog and find the majority of your post’s
    to be exactly what I’m looking for. Do you offer guest writers to write content to
    suit your needs? I wouldn’t mind composing a post or elaborating
    on a number of the subjects you write related to here.

    Again, awesome weblog!

    Here is my weblog; Child Height

  33. Hiya very cool web site!! Guy .. Beautiful ..
    Amazing .. I will bookmark your web site and take the feeds additionally?
    I’m glad How To Grow Taller seek out a lot of helpful info here
    in the submit, we need work out more strategies on this regard, thanks for sharing.
    . . . . .

  34. What’s up, just wanted to tell you, I enjoyed this post.
    It was practical. Keep on posting!

    Here is my web site – Height Increase Surgery

  35. Excellent post. I will be dealing with many of these issues as well..

    Review my weblog: hallux valgus treatment

  36. An impressive share! I’ve just forwarded this
    onto a coworker who has been conducting a little homework on this.
    And he actually ordered me breakfast simply because I discovered it for him…
    lol. So allow me to reword this…. Thanks for the meal!!
    But yeah, thanx for spending the time to discuss this topic
    here on your blog.

    Look at my site … Human Growth Hormone

  37. I enjoy reading through a post that will make men and women think.
    Also, thanks for permitting me to comment!

  38. Appreciate this post. Let me try it out.

  39. Its like you read my mind! You appear to know a lot about this,
    like you wrote the book in it or something. I think that you could do with some pics to drive the message home a little bit, but
    other than that, this is magnificent blog. An excellent read.
    I’ll definitely be back.

  40. It’s difficult to find experienced people on this topic, however, you
    seem like you know what you’re talking about! Thanks

  41. You have made some really good points there. I checked on the net to find out more about the issue and found most individuals will go along with your views on this web site.

  42. Awesome things here. I’m very satisfied to peer your
    post. Thanks so much and I am taking a look ahead to touch you.
    Will you please drop me a mail?

  43. Wonderful items from you, man. I have have in mind your stuff prior to and you’re just extremely wonderful.
    I actually like what you’ve obtained right here, really like what
    you are saying and the way during which you are saying it.
    You are making it entertaining and you still care for to stay
    it smart. I can’t wait to read much more from you. That is
    really a terrific web site.

    Here is my web-site: biofuel.runbiodiesel.com – Lien

  44. Spot on with this write-up, I actually believe this site needs far more
    attention. I’ll probably be returning to read through more, thanks for
    the advice!

  45. Hello There. I found your weblog the usage of msn. This is an extremely neatly written article.
    I will make sure to bookmark it and come back to learn extra of your useful information. Thank you for the post.
    I’ll certainly return.

  46. What’s Going down i’m new to this, I stumbled
    upon this I have discovered It absolutely useful and it has aided me out loads.
    I am hoping to give a contribution & help different customers like its helped me.
    Great job.

  47. Hello There. I found your blog the use of msn. This is a really smartly written article.
    I’ll be sure to bookmark it and return to read more of your helpful information.
    Thank you for the post. I’ll definitely return.

  48. We’re a group of volunteers and starting a new scheme in our community.
    Your website provided us with valuable info to work on. You’ve done an impressive job and our whole
    community will be thankful to you.

Leave a Reply

Your email address will not be published. Required fields are marked *

*


*

* Copy This Password *

* Type Or Paste Password Here *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>