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I think this article nails a lot of key points, and it is really spot on. The sad thing is not many people are going to read it because it is a lot of true word
by zanny 14y ago
I think this article nails a lot of key points, and it is really spot on. The sad thing is not many people are going to read it because it is a lot of true words.
I don't think the economic culture of the US bred global business, though. I think the trivialization of the distance did. Glottalization meant that it would be much cheaper for a US based company to enter a fledgling market (say, McDonalds) and reestablish themselves as the market force in that area, since it has a much cheaper barrier to entry than building an entire enterprise from the ground up. The economies of scale grow faster as you approach ludicrously global scale, because you can really streamline all aspects of your business.
There isn't really a correlation with global business and competition, either - I'd say global business is only possible when corruption enables rent seeking business (which has no competition and is rigged to the market dominator) OR when there is real competition, and the global business is so successful because of the economies of scale and significantly lower market entry barriers to new regions than a brand new business.
So you could have either. We have, sadly, a lot of the first, but the second can happen to.
And global business (with competition) is good. It means the competition and economies of scale drive profits to zero, and maximize the benefit to the consumer.
The problem with global business is that when our markets and economics are global but our politics and emotions are local, those super companies have significantly more influence than a tiny group of people in an isolated pocket economy artificially cut off by an imaginary line on a map. The global business that truly connect the world extract their clout from the entirety of the species, while a countries politics gets its validation from its people.
And no country has a population, GDP, productivity, or workforce, competitive with the global one. Of course they will be corrupted by global business. Their resources are much more limited and restricted, because our politics and cultures are outdated in the face of a modern economy.
But this is just one piece of a giant puzzle. Individually, the problems are obvious, stupid, an simple, and often the work of the greedy and corrupt rent seekers. But there are millennias worth of built up greed to lead us to where we are today with the rigged system we work with, and the individual parts complement each other and support one another to maintain the whole broken game. The problem isn't fixing one part, it is figuring out how to remove the tumors before they kill the host, and there are millions of small tumors that add up to a large cancer. And as you chip at the fringes of one, the rest keep on poisoning the system, and they all have to be somehow dealt with.
- HNLogInShit 14y agoOne problem is that the author doesn't realize that you need a hyphen to combine two words into one descriptive term. A rent seeking economy is like an animal seeking shelter. But a rent-seeking economy is a type of economy.