What is the real purpose of globalisation, who causes it to happen, and why

I don't see what is so complicated in understanding what outsourcing and offshoring and globalisation do. Its not really done to source better goods or to improve people's lives (at least not in the west), its really a new lever employers have found to force employees to accept
ever DECREASING real wages (SEE WHY I SAY THIS ). It started in earnest around 2000. This is now affecting all jobs apart from higher management jobs and some obscure professions as well as localised ones such as lawyers, politicians, architects, doctors. However whatever is not packaged up and sent to India, then is done by Indians or chinese on special VISAs in the US or UK. The purpose is to lower the wages in the professions for which the VISAS are issued e.g. computer programmers. This started getting big with the millenium bug where there was a real shortage, but then the measure was expanded in order to affect many middle class jobs.


Of course India and China benefit from this and ordinarily the living standards of the indians and chinese would rise and the offshoring would not be so attractive any more from a cost saving point of view. EXCEPT of course that China & India together represent 50% OF THE POPULATION OF THE PLANET. In other words by the time this geographic arbitrage becomes less extreme the author (i am 31) will be long dead of old age (which might not be that old depending on if there are pensions and a free health system by the time i am old that is... or will decent pensions for normal people be also "competed" away, or be unaffordable, or be inefficient)

I believe that we will see a great reversal in how societies look like. The small rich club followed by a large and prosperous middle class, followed by a relatively small poverty class (which in many cases consists of people with low skills education or in some cases intelligence) will change. The poverty class is supported by social safety net and minimum wages and free healthcare ensuring a decent minimum for everyone.

All this will be replaced by a crony capitalist climate resembling pre-1930es USA. Robber barons in digital businesses owning media, many more Murdochs manipulating governments. A sizeable uber rich elite, and a vast insecure and poverty stricken middle class which is not really
that different than the poverty class except that it will desperately try to join the rich club without ever looking back. The reason this time the pressure for a new deal will not happen is that the media is now telling us what to think. History never repeats exactly of course but i think this time there are cross border issues that give the rich much more political and opinion forming clout.

I don't think we should join the US in this future... We should keep our redistributative policies, and high taxes and stable societies without the gated communities... and the african style looting of shops after natural disasters...

I might be wrong but i fear i am not...

2 comments:

  1. Interesting post.... you may also analyze the benefits...

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  2. Ahoj,

    I like your blog.

    I was going to post a comment asking where all the anger towards Americans was coming from until I read the article from Fox news about Slovakia. What dumbasses they are.

    But don't forget that not all Americans are clueless. Remember, Bush only won the Presidency this time because he got 100,000 votes in Ohio. And Gore won the last one.

    American media is pathetic, becoming more and more about sensationalism than news. Reporters love to portray Slovakia and other countries in comic terms because it makes for more interesting reading.

    To be fair, I found Euros to be equally clueless. I'm always surprised at how many Germans have no idea where Slovakia is, when it's just on the other side of the Czech Republic.

    Slovak American
    http://slovakamerican.blogspot.com/

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