Economics is Fun, Part 19: Globalization

[Chris]

It's always been global.

[MMC]

What are the some of the dedriments of globalization? Chris did you see those guys the Prophets of Doom where that one guy was saying that maybe we need to come back to the community around us and not strive for the globalization. Taking out the need for transportation all across the country. I am sure he was talking about moreso for food products and supply. With the support of local markets and farmers rather than driving them out in order to make room for more people to live next to each other or on top of one another.

[Chris]

I think there's two meanings to globalization. One is what the video is about, a broad meaning having the do with exchange and trade of goods and services which really knows no boundaries, much as governments try to manage it. The other meaning is more contemporary and narrow, having to do with outsourcing and businesses moving overseas and so on. The latter is detrimental to the job market of course and to government revenue (arguably a good thing). But what is causing that? Is it not government regulations and taxes? Studies like the Index of Economic Freedom show companies look to those countries who offer tax havens, and not surprisingly, those countries' revenues go up. One other detrimental aspect to outsourcing and moving offshore or overseas it is leave America high and dry defensively, you can't fight a major war without the industry to build the machines of war. I don't have a ready argument on this front other than globalization, of the broader meaning, tends to bring about prosperity and with it peace.

[MMC]

Here ya go Chris. I tried to find it broken down into segments but they didnt have listed that way. So you can take your time watching it in whatever segments you like. It's been awhile since i saw it. But the part on what I am talking about is in there at the end starting at the 1:10 mark on the solution of relocalization and decentralization. Also the beginning is on starting with the Economy.

[Chris]

I recall seeing part of that. Those guys sound to me like climate change alarmists, peak oil alarmists, etc. What I see us on the verge of in terms of collapsing is popping the government bubble, that I don't think we can continue to sustain, as we're seeing in Europe. I include in that crony capitalism, the collusion of big government and big government. So in that sense I see relocalization and decentralization as solutions.

[Peter1469]

The video forgot to mention how to deal with other nations that subsidies their exports to the US. That sort of f's up the free market. Tariffs are the logical answer. Even the playing field so that a free market can exist.

[Chris]

"That sort of f's up the free market."

It does. So what's our recourse, to f it up some more?

And who does their f'ing it up harm? Why only their own citizens who are the ones paying for the subsidies through taxes, all the while we get cheaper products. Why should we do that to ourselves?

[Peter1469]

"That sort of f's up the free market."

It does. So what's our recourse, to f it up some more?

And who does their f'ing it up harm? Why only their own citizens who are the ones paying for the subsidies through taxes, all the while we get cheaper products. Why should we do that to ourselves?

You protect your own industry with tariffs.

[Chris]

The US doesn't own any business, well, except a few banks and Government Motors.

[Peter1469]

And China does own businesses. They subsidies them so that they can sell the same thing American companies sell but at a much lower price. That isn't free trade.