Globalization

[Kagemusha]

1. The low payed industrial jobs are leaving out of the country. to countries with cheaper labour.

2. Negative effects.It will twist the world economy and only serve the intrest of the global investors. Countries start competing who has the cheapest labour and that will lead in more misery and unstable societys.

3. I dont know is there anymore much to do about it. But the trading Unions like the EU can manage to slow it down.

[Kanamori]

1. The US has been made rich by it, and it has changed the nature of our economy.

2. Read Gibson; specialization of goods.

3. Libertarian ideals--free trade is good, and globalization will help end extremism.

[Xiahou]

1. The US has been made rich by it, and it has changed the nature of our economy.

2. Read Gibson; specialization of goods.

3. Libertarian ideals--free trade is good, and globalization will help end extremism.

Sounds good to me.

[Red Harvest]

Globalization is wiping out the *high paid* manufacturing jobs in the U.S. The low pay, low skill jobs went long ago (1st phase.) It is also wiping out the R&D side. (More high compensation areas.) Both of these are things I've observed first hand, both in U.S. operations, and on location for the overseas facilities.

It is this 2nd phase is what concerns me. There is a lot of short term profit, but not long term reinvestment, at least not in the U.S. (and surprisingly little overseas.) The loss of the high skills/high education jobs is not a good harbinger for the future. And what I've seen in overseas operations is very little in the way of R&D. They are run as low margin operations.

The benefits of globalization are a cheaper product for consumers and access to many products we would not have. The long term bill hasn't arrive yet, or at least we haven't been required to pay it yet--we just keep racking up mammoth trade deficits.

This is not to say that we should resist globalization. I think most protectionism is counterproductive (other than preserving parts of industries for cultural/social reasons.) However, I do recognize globalization has its negatives.

Politicians should be focusing on keeping/regaining our edge through measures that encourage research and development IN OUR COUNTRY. They should also be seeking to make sure cheap labor nations abide by reasonable environmental, safety, intellectual property, and free trade standards. That will go along way toward levelling the field.

As for the future: I see a rough patch coming, where the 1st World standard of living decays while the 3rd world wage earners rise. Should rebalance after a time, but the transition looks unpleasant. If we had some great new tech coming, I don't think the high end would suffer. Unfortunately, decades of declining R&D (for the sake of growing profit) has long term consequences.