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It's not globalism, per se, globalism is a symptom of monetary policy implemented in tandem by most of the world's central banks. The root cause is that every
by oppositelock 9y ago
It's not globalism, per se, globalism is a symptom of monetary policy implemented in tandem by most of the world's central banks.
The root cause is that every developed nation on earth runs an inflationary monetary policy coupled with perpetual deficit spending. Money creation via central banks and deficits is not uniform, it pours into economies via cheap credit, subsidies, spending on boondoggles, and it's the people who have first access to this newly created money who benefit the most, and these tend to be the people with a lot of capital, political connections, etc. The average person simply sees their limited buying power decreasing over time.
- quadrangle 9y agoSure, but it's not strictly the inflationary / deficit issue right? It's primarily (as you say) a matter of who gets the increased currency, right?
- maoistinquisitr 9y agoThe cheap credit perverts the entire economy away from productivity growth, which is what produces real wealth that tends to be widely shared. It doesn't matter how the cheap credit is distributed, the credit just redistributes wealth and doesn't increase it. There's that and then also the problem of the global monetary system. The average American is getting crushed by the dollar reserve currency system. America can't be globally competitive in labor intensive industries in substantial part because of it. Triffin's Dilemma. But the ability to issue endless USD denominated debt that the rest of the world eagerly gobbles up is fantastic if you're closely attached to the DC cash spigot or NYC banking. So there's this direct opposition of interest between the current elite who derive enormous power and wealth from the system, and typical Americans who just want a job.