Here's the good news about China's emergence as the world's second largest economy -- US business has figured it out. And here's the bad news -- while US companies can go global, most US citizens can't. The result, in this age of globalization, is a growing tension between the interests of America's business leaders and the interests of much of its middle class. Indeed, the most important fault-line in American politics may not be between Democrats and Republicans, it is between those businesses and business people who are succeeding in the global economy and those who are not.
This clash of values and interests up-ends our usual ideas of left and right. Consider immigrants -- it is no accident that Mike Bloomberg and Silicon Valley's bosses are squarely on the side of the lower Manhattan mosque and of liberal immigration laws. But CEOs are less thrilled about the Democrat-driven imposition of more regulation and the promise of higher taxes.
The irony is that the globalization of American business is surely a good thing -- imagine how much worse things would be if US companies hadn't figured out how to play and win on the world stage. But the equally important truth is that the twin revolutions of globalization and technological change are disproportionately benefiting the global super-class and the middle class in emerging markets like China and India -- while leaving much of America behind. America's business leaders need to figure out how to help America's middle class join the global economic party -- or face a populist backlash which will make Barack Obama look like Milton Friedman.
Read more from Chrystia at Reuters.
"America's business leaders need to figure out how to help America's middle class join the global economic party -- or face a populist backlash which will make Barack Obama look like Milton Friedman."
Whether they are multi-national or not, if their business is based in America then it should support America. These global free-market clowns are going to lose everything when the people revolt against them. If they would just grow some humanity and concern for their fellow human beings, share in their wealth and play fairly, then it would not go down so hard on them. But, no, they dont seem to be willing to compromise. It is foolish of them because they will lose. After all, the rich are a small minority group.
Since they are unwilling to play fairly, they should be stripped of all their possessions, and forced into a life of servitude to make up for it. It might save their souls.
Tarriffs can be retalitory and take years and years to negotiate--so I prefer to use this method to help American workers achieve fair wages.
Corporations pay 16% on average currently, stated rates are 35-39%. All US sales and profits should be taxed--no more avoidance scams by having an offshore headquarters. Shut down all loopholes, deductions and deferments. Allow for some level of outsourcing, but in order to qualify for a tax break to 15%, companies selling in the US must provide a reasonable number of US jobs commensurate with their US sales and profits.
Additional tax revenues from US sales and profits of low-wage paying employers or high ratio outsourcer corporations should fund a profit-sharing wage supplement to low wage US employees---to get them as close to living wages as profits allow. The whole chain of production must be reviewed to establish qualifying tax rates--including on-site contractors and subsidiaries.
This addional revenue should also fund extended unemployment benefits with retraining to in-demand jobs, that allow for workers to get skills and certifications. This could be completing a degree or getting a license to drive a truck. Aptitiudes and abilities should be assessed and figure into a plan for this training. This way the US will have the most globally competitive work force.
Real change will not come until we convert the media into an institution that informs the electorate. The founders believed an informed electorate was necessary for our democracy. However, between 1830-50 the richest 1% eliminated gov't printing income to news publishers. This made media survival dependent upon the approval of large advertisers, whose favored news providers have been the ones which produce an angry and disinformed electorate. This because a mob is easier to manipulate than an informed electorate. This simple tactic has worked to get the American electorate to vote against their own interests, and for the interests of the richest 1%, about 3/4 of the time, for the past 175 years. We must change this.
I only found it because I have a Google alert for Social Security Deficit Commission:
Looks Like Obama Is Considering Cuts in Social Security Benefits
http://www.huffingtonpost.com/saul-friedman/looks-like-obama-is-consi_b_690262.html
If Barack Obama could EVER discover that bit of Friedman's wisdom - I KNOW about the rest - we would be well on our way to economic democracy and the end to the prvate creation of this nation's circulating medium.
Like in here:
http://www.economicstability.org/history/a-program-for-monetary-reform-the-1939-document
There is no doubt that domestic production is preferable to foreign production on many accounts, particularly for employment, environment (avoiding the huge waste and energy consumption of transporting goods all over the world), and economic (avoiding unsustainable trade deficits). Implementation of fair tariffs is not "Protectionism", it is common sense and benefits everyone.
The US media encourages us to feel powerless. "...Imagine how much worse things would be if US companies hadn't figured out how to play and win on the world stage" writes Freeland, scaring us with the prospect of a weak US dominated by a super-productive China. What she calls "figuring out how to play" I call selling us sweatshop products made for pennies, with a 400% profit margin, so it seems to me that they punked us after all.
McJournalism.
It is time we begin to LEAD not FOLLOW. Globalization is a "good" thing only when there are standards and LAWS that benefit all.
$600 "Coach" Purse....made in China
$500 "Ralph Lauren" womans jacket....made in Sri Lanka
$110 "Miss Me" womans jeans...made in China
$300 "Tahari" dress...made in India
$100 "Calvin Klien" purse...made in China
$98 "DKNY blouse...made in China
If I were to go thru the entire store...I doubt that I would have found anything made in the USA....
As in depressions/recessions of the past, this complacency from the working class won't last. Even here in the US. I'll give it about another year or so. Then the SIRGTHIF with or without a "democratic" congress.
Whatever they need to do to make money for their top executives and stockholders, they'll do.
Globalism is uncontrolled greed, leashed upon the entire world. Scary scenario.
More Poverty...More Sickness...More Crime.....
Wish it weren't true.....but......