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Globalization (and corporatization) creates money vacuums, and dead spots in the places that they replace. Walmart/Amazon/Etc vacuum money and resources from t

by taurath 10y ago

Globalization (and corporatization) creates money vacuums, and dead spots in the places that they replace. Walmart/Amazon/Etc vacuum money and resources from the local (or "local-ish") community to their respective profit centers. It used to be small towns would be relatively self sustaining and much of the money staying within local boundaries, and while the cost of goods was higher at least buying them would support local businesses. When a factory leaves a town or a company goes under from overseas competition it creates a big gaping hole in the local economy that frequently doesn't end up being filled. There are no companies coming back, and no capital available in the area anymore since all profits are sucked up. Maybe all this is inevitable, but it doesn't quite seem so to me.

maxxxxx 10y ago
The last 30 years have shown that growth through globalization mainly benefits the top few percent and hurts the rest. For most people wages have stagnated or gone down. You can get cheap T-shirts while housing prices explode. I bet with more automation even in China a lot of the factory workers that escaped poverty will get stuck at low wage jobs or get laid off soon and be poor again. I hope people everywhere will develop an understanding that growth that isn't widely distributed is useless or even negative.
- Retric 10y ago
  It's location specific. It hurts the lower and middle classes workers in developed countries and helps almost everyone else. Utra cheap Wal-Mart goods are great if you are retired and living on a small retirement. Or worked in a non factory job in the first place. A soul crushing factory job is still better than manual farm work in a developing country. Those same factory workers add a lot more income for local economies in developing nations. It also tends to harm farmers in developing nations. But, that's largely from first world farming subsidies. PS: After China replaces those workers with robots they will be poor in a developed nation which is generally a lot better than being poor in a poor nation.
  - cousin_it 10y ago
    It hurts developing countries too, e.g. no incentive to give people a good education for free if you'll just lose them to brain drain. Globalization allows the best workers worldwide to spend their time solving the most profitable problems, i.e. rich people problems.
    - Retric 10y ago
      That brain drain also tends to remit a lot of money back to the developing country. Even without family in the area many people spend 10-20 years in the west then go back with significant capital.
  - maxxxxx 10y ago
    The factory jobs will go away in China soon too and those workers will be out of a job again. As long as the capitalists suck up all gains any improvements for poor people will be temporary until they get replaced by even cheaper workers or robots. Maybe once doctors' and lawyers' work gets automated then things will change since the political class is mainly lawyers.

by taurath 10y ago

maxxxxx 10y ago

The last 30 years have shown that growth through globalization mainly benefits the top few percent and hurts the rest. For most people wages have stagnated or gone down. You can get cheap T-shirts while housing prices explode. I bet with more automation even in China a lot of the factory workers that escaped poverty will get stuck at low wage jobs or get laid off soon and be poor again. I hope people everywhere will develop an understanding that growth that isn't widely distributed is useless or even negative.

Retric 10y ago
It's location specific. It hurts the lower and middle classes workers in developed countries and helps almost everyone else. Utra cheap Wal-Mart goods are great if you are retired and living on a small retirement. Or worked in a non factory job in the first place. A soul crushing factory job is still better than manual farm work in a developing country. Those same factory workers add a lot more income for local economies in developing nations. It also tends to harm farmers in developing nations. But, that's largely from first world farming subsidies. PS: After China replaces those workers with robots they will be poor in a developed nation which is generally a lot better than being poor in a poor nation.
- cousin_it 10y ago
  It hurts developing countries too, e.g. no incentive to give people a good education for free if you'll just lose them to brain drain. Globalization allows the best workers worldwide to spend their time solving the most profitable problems, i.e. rich people problems.
  - Retric 10y ago
    That brain drain also tends to remit a lot of money back to the developing country. Even without family in the area many people spend 10-20 years in the west then go back with significant capital.
- maxxxxx 10y ago
  The factory jobs will go away in China soon too and those workers will be out of a job again. As long as the capitalists suck up all gains any improvements for poor people will be temporary until they get replaced by even cheaper workers or robots. Maybe once doctors' and lawyers' work gets automated then things will change since the political class is mainly lawyers.