Believe in the Tooth Fairy? (Economic question)

[badshotbob]

No? How about the Easter Bunny or Daffy Duck?

These are real things we can think about, right? Real things we are used to and are very familiar with, right?

Well why do you (you know who are are) believe a global economy is a good thing?

I've been lying low out here lately which has given me more time to tune into the squawking taking place around the globe, particularly within our media. It's fantastic! Awesome! Amazing what stories are being reported on now.... How screwed we are because of the loss of millions of manufacturing jobs over the recent years, competitive labor and greed that has forced unfair trade practices, the trade defecits with China.... even stories on China buying our military technology and weapons, jet engines, etc. on the open market.. WITH OUR MONEY!!!!!


What'ya think?

[Jack Ryan]

Mao-Mart is a big supporter of the Communist Red Chinese work force.

[DougMD]

Here is my take on this. I'm not out to slam anyone, but hope we can engage in healthy debate. I don't pretend to know everything, so am open to ideas I haven't considered...


A global economy leads to a more efficient transfer of resources from raw materials to end user. If US workers can compete well overall, total job numbers should remain at least steady, if not growing, and products should be cheaper and of higher quality through the increased competition. All consumers benefit from lower cost, higher quality goods, and the profit motive in a global market spurns innovation, invention, and further ways to control expenses and increase quality.

If the US wants to keep jobs here (ie. doesn't feel like it can compete effectively), it can impose quotas or tariffs on imports, and assure that jobs in many sectors don't transfer to other nations. However, this would make products more expensive and of less quality than a fully global, competitive marketplace. It also strengthens unions to the point of increased inefficiency and even higher costs.

It is a two-edged sword, but I believe the benefits outweigh the costs. In any society, as technology and markets change, jobs will be lost and others gained. Here, there have been complaints about manufacturing jobs going overseas. However, total job numbers are higher now than before such jobs were lost. Some say the jobs available now are lower paying food service type jobs, but I submit to you a few things to ponder. First,that suggests people are now eating out more than before, hence the tremendous new demand for work in the food industry. However,if all those jobs were lost, don't people have LESS money to spend eating out? Also, even if it is true, aren't manufacturing jobs, such as the ones going overseas, low paying jobs to begin with? It's hard to argue that people aretaking onlow paying jobs, implying the ones they had before were higher paying,when in fact those manufacturing jobs were indeed also low paying jobs.

[kevin1]

Well said Doug , I agree .

[mr-pirk]

Doug MD "when in fact those manufacturing jobs were indeed also low paying jobs".

There are a lot of good payingmanufacturing jobs that have leftand are leaving the state of Arkansas, I would assume that holds true for other parts of the USA as well.

Thanks
Mr-Pirk

[MThunter]

Nicely said Doug. We have a tremendous responsibility as one of the main interests in the IMF to see that the jobs that are going out are subject to fair labor practices. Sadly many are not. Why do you think these jobs go over seas? Because even after shipping and manufacturing costs, the profit is still greater if products are assembled in another country. I can tell you exactly where the difference is being made up: the labor. Take a seriously look at Jamaica's Free Zone and you can see what I'm talking about. Products are "Made" in the USA, then shipped down there to be assembled in duty free sweat shops, but when they come back they still get the "made in the USA label". We're losing our low paying manufacturing jobs to countries that cannot enforce ethical labor practices. At least in the US those doing the menial work only have to work an 8 hour day, hopefully with some benefits, at a wage that can feed their family.

[kenton6]

The job market and economy that is effected by jobs is extremely complex in one country - like ours in America - it only seems to exponentially grow with a global market.

There are pluses and minuses to both sides. I do not think we can turn back from a global economy. We may be too far into it now - maybe not. The transitioning period we are going through is interesting in many ways. Some are being left behind, others are taking full advantage and still others are coming up on the short end of the stick in their earnings for a variety of reasons.

My biggest fear with a global economy is the dangers that come with less independence. Like with oil, the more dependent we become on goods from other countries, the less we are able to control our economy to stem inflation, unemployment, education, etc. etc.

Just some thoughts.

[bawanajim]

ORIGINAL: mr-pirk

Doug MD "when in fact those manufacturing jobs were indeed also low paying jobs".

There are a lot of good payingmanufacturing jobs that have leftand are leaving the state of Arkansas, I would assume that holds true for other parts of the USA as well.

Thanks
Mr-Pirk

We have lost over 1000 jobs in the local Tool & Die shops in our town. Maybe to a M.D. those are low paying. But averaging over twenty dollars in hour is more than double any ofthe fine jobs Wal- Mart has to offer!

[DougMD]

I'm not an M.D. I live in Maryland

[Briman]

The buggy whip makers will go out of business or be out-competed by buggy whip makers who can build the same low tech products for less. Same as it ever was since the beginning of time.

If you aren't learning new skills or getting an education, you'll become a dinosaur. Dinosaurs go extinct. The $20/hr unskilled union assembly workers are dinosaurs.

A person with a little bit of ambition can easily make a lot of money in the trades. There will always be need for skilled trades like plumbers, electricians, masons, and carpenters. Unfortunately its hard work, something people don't like to do anymore.