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The problem with integration is that it is more efficient until there's a problem, at which point it can be catastrophic. The one boat held up 300 other ones, a
by prewett 6y ago
The problem with integration is that it is more efficient until there's a problem, at which point it can be catastrophic. The one boat held up 300 other ones, and while 6 days probably isn't a huge problem, suppose the country you outsource all your manufacturing to decides to go to war with you? Now you don't have any manufacturing because it was cheaper to outsource it. Or maybe your supplier of soybeans gets a nationalistic ruler who decides to not ship you any soybeans.
Also, I'm not convinced that maximum efficiency is good for everyone. The US had a lot more manufacturing jobs before outsourcing to China. Sure, stuff is cheaper now, but a bunch of people no longer have decent paying jobs, and the labor market is now minimum wage or requires a college degree. I those people formerly doing manufacturing are a good deal poorer thanks to global integration. And we all are going to be poorer if all the economic-losers elect populists, since I can't think of any populists who didn't ruin their country if in power long enough.
- missedthecue 6y agoIntegration reduces risk of conflict. You don't want to attack the country that buys your grain, and they don't want to attack the country that buys their steel. It's a mutually beneficial relationship, and it's one reason why global conflict is near all time lows today. Furthermore, I don't understand the fetishization of factory work (that both the left and right seem to have). It's menial, tough, body-breaking work, with long hours in sweaty, dangerous conditions. It's main appeal is to very poor nations where it is less awful than the alternative they had anyway (substance agriculture or starving). It's a good thing that we can become more productive and have higher paying safer jobs in the west and that in 'third world nations', they can find productive work that is safer and higher paying than their previous situation. The US had a lot of factory work when it was a poor nation, but there is no good reason to return. It's the concept of comparative advantage, and it makes us all better off on net.