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This all makes sense. But. Given the high degree of specialization, livelihoods and economies get very exposed to change, which, according to the cliché is comi
by Create 16y ago
This all makes sense. But. Given the high degree of specialization, livelihoods and economies get very exposed to change, which, according to the cliché is coming at an ever accelerated rate.
Some people and economies get to choose how and when to switch, and according to the mantra, innovation plays a role* (some call it here wealth creation). Some don't, and this mostly applies to colonies (especially economic ones). So people loosing their living in places where they are coerced into submission become protectionist (in the form of nationalism -- one of the root causes of national socialism was, that Germany and Italy were left out of the colony pie, and didn't get what they thought they deserved to match their status).
I think everybody would agree, that in a European country, being perfectly capable of producing pears (i.e. suitable climate), it is unsustainable to have over 20% jobless, more debt than a country could ever repay in a generation, and yet import pears from China. And pumpkin seeds. With the usual socks and cutlery and electronics. Worse, this is a real example I have given. Globalization, in this current form is not here to stay. You can only get your WII for the price of a digital watch ten years ago by externalizing more and more costs (like shipping in your example). Out if sight, out of mind. This is a very important pillar of globalization, which oddly enough is turning against itself (better communication, though less true of the active concern of people, which one might think as a consequence).
* This reminds me of a Russian children story. Once upon a time there was a pencil factory. Somebody had the obvious innovation, that since _nobody_ uses the last inch of lead of a pencil, because it would be too small to hold and sharpen anyway, so it makes sense to make some profit by leaving it out. Great savings, management promotion. Soon after, seeing the success, comes a new innovation: everybody knows, that the essence of a pencil is writing, and if there is no graphite, there is no need for the wood either. Cutting the useless piece of wood from the pencil would save forests and make huge profits. This cycle of logical, rational and economically sound innovation continued and iterated, until the pencil was gone. Everybody got prizes and promotion everywhere. But then came along the new innovator, who thought about putting a piece of graphite embedded into a wooden straw. Brilliant invention, huge prizes, and the pencil was reborn.
The article is saying, that it is becoming readily apparent, that the pencil is about to be gone.
- thwarted 16y agoWhat are the chances that the 20% unemployed can produce pears that are price competitive with the ones shipped from China or with substitute products?
- deleted 16y ago[deleted]
- Create 16y agoGiven the industrialization of modern agriculture, and more importantly what subsidies do (ie. CAP in EU, corn in USA) mean, that labor has almost no impact on pear production [and many other, for that matter]. The funny part of globalization, is that costs, values and price become decoupled. Economically this can be made to make sense, but in many cases, they cannot work by common sense.