Current Events — HabitableZone

Current Events » in reply to 'many steps that can be taken' how about an obvious one?

BTW: I named two obvious steps... Plus some empirical observations about globalism.

1) Incentives
2) Closing tax loopholes that give advantages to outsourcing

some ideas for 1)

Offer companies a tax break if the percentage of their employees that are employed domestically exceed (some percentage, like 90-95%).

Offer companies assistance on employee benefit programs who keep outsourcing to a certain percentage.

The exact details, I would leave up to someone who knew more about economic theory,macroeconomic practice and the fine details of the global labor market than me.

I would like to see incentives that permitted a certain amout of outsourcing to assure international competitiveness, I am not an 'anti-globalist'. Rather I think the countries that are really kicking butt and taking names in this phase of globalism are place like India and China, who are NOT opening their markets and who ARE using the power of their national governments to power their economic rise at the expense of globalism.

I don't need to really give evidence for what China is doing- notice their unfloated currency and their still essentially state-run economy. Indian government works with their local entrepreneurs to strip jobs from the west. Indian universities are all state run, and India goes to great expense to import top-notch researchers and experts from the west, or to 'finish' promising students by sending them to the West, at their expense, for graduate school.

India also provides low interest loans, and asistance in determining what area of IT is ripe for the picking (BTW, watch Drug R&D IT support move to India in the next 5 years)

The point is, Globalism has never really existed outside of polemic doctrines and Economic theory. Large swathes of Global markets have been state run or state controlled or state protected through the 60's, 70's, 80's and 90's. Many economists say that Agribuisiness is more protected and state controlled now than even in the 1800s.

Globalism, like many 'Great Economic Paradigms' is more of a myth or Ideal or Doctrine than a reality. And frankly, I think Globalism is in the decline ever since its become clear that more money and economic stability can be had is nation-states don't give up their soverign power over their domestic economy...

Note the economic rocket-rise of India and China. Note the continual stagnation of Japan even after they enacted reforms in the 90's to de-regulate huge chunks of their economy and bust up their massive international state-assisted horizontal monopolies and nepotistic government-corrupting banking houses.

In response to the recent (and ongoing) global recession, some of the countries that are weathering the storm the best are not the countries who are opening up- but the once 'globalizing' countries that are backing away from globalization. Malaysia had an economic crisis recently. Their response was anti globalization. The de-floated their currency, enacted tariffs and did all the old tricks from the pre-globalization craze. So far, their economy is doing very much better.

Globalization is becoming the cry of large corporations who want all the rules to work in their favor. Its actually becomming a bit of a joke. Even European countries are backing away from globalization as well. Russia was the globalization that never was. Japan is left holding a stagnant economy looking at the ruined nationalistic institutions that fuled their rize in the 80's.

Pretty soon, the only 'globalizing' country left will be america, and it will actually be a hand-out, where we give a protectionist world our Industries, our assets, or tax-base and our prosperity.

Sorry if this rubs your doctrines the wrong way, but the evidence seems pretty stark that Globalization was the monolithic global economic practice that never was, and doesn't work.

Davin L.

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