thku4grace

10 Winning Stock Themes in an Obama Administration

"Globalization is a shell-game, a scam. What good is it if I pay 10 cents less for a pair of socks from China if the dude across town goes on unemployment because his domestic sock factory closes? All globalization does is shifts costs from business to goverment, and this ends up causing taxes to rise. Foreign goods should be subject to sensible tariffs to offset lack of minimum wage laws / environmental protections in the exporting countries. Level the playing field. You do that in sports-- why not in trade?"

Oh my, how incredibly uninformed can one be?
First of all I think the price difference for a pair of socks is more than 10 cents. The theory behind globalization is that different countries have different strengths. Using China for comparative purposes--we have a country with a huge population and an inexpensive labor force. Some may see it as slave labor wages but the fact of the matter is a little money goes a long way in China. One can still buy a cup of noodles on a street corner in Beijing for 7 cents. Clearly, we can't compete in easy to enter low-tech manufacturing. Applying tariffs to offset the price discrepancy was part of the prescription for the 1930's depression. I can't blame politicians of that day for their missteps as they didn't fully understand the ramifications of their protectionist policies. To spin this drivel now is incredibly ignorant. The question for Americans that have worked in low-tech industries is, so what can we do? My answer is get an education in this education-friendly nation. Take advantage of the opportunities that abound in this nation. There is a belief held by many in this nation that China is a highly educated nation, but that's largely untrue. In fact, while a good education is looked upon highly in Chinese society, and they push their children hard, only 3% of the population get a university education. Interesting coming from a country that prides itself on socialism. What a failure.
Lastly, the shift of costs from business to government---there is truth to this statement. All nations have provided support for various industries that export products overseas. China, Japan, Australia, Germany, France, Canada, U.S.....the list goes on and on. It is actually addressable through international trade laws. The problem is the length of time from infraction to remedy. There also is a problem of transparency. The U.S. is seemingly more transparent than most all other nations. Even European nations have been more capable in covering up their subsidization machine. So far, the only remedy is the expense incurred on the taxpayers. Countries can't indefinitely subsidize industry. With a globalized world, there will always be a new country with a lower standard of living that would be willing to host an foreign company seeking cheap labor.