Globalization: "One cannot produce that with us anymore!"
On a New England
tour our bus company passed the headquarters of the "clark"
-Schuhfabrik. Until the 1980s the shoes were still made even here,
but today there is only the headquarters settled.
Our otherwise competent tour guide commented on this walk with the
usual prejudice: "Globalization shoes and textiles can unfortunately
no longer be produced in high-wage countries.".
But this assessment at all
true? Or
will only permanently convinced us of pre-poled economists,
politicians and journalists? So why the shoes you could 30 years ago
finished the country of origin - and then suddenly
stopped?
What happened? Were about the selling prices in the Western European
shoe stores plummeted suddenly, was only asked for nor by cheap Asian
goods, the Western European wages had exploded?
No, all this was
not! Many manufacturers had only figured out how you could make the
miserable lowest wages in the Far East as its own.
The pure cost for a pair of brand shoes, for example, could be halved
smoothly through outsourcing - they fell by about 30 to 15 DM. In
maintaining the usual retail selling prices is thus the
Rohverdienstspanne increased for the producer of 20 to 35 DM (The
delivery price. trade was still at about 50, - and the retail price
at 100, - DM.)
This "brilliant"
business model prevailed in many industries.
I know, for example, photo album manufacturers who closed their
factories in Western Europe and advertised for the manufacture
international. The albums were first produced in a former Eastern
Bloc country, and because the quality standards were not met there
later awarded to the jobs to the Far East. Me as a dealer was told
that the old level of quality would not be accessible to the wage
dumping countries, of course.
But the albums were by the relocation did not become cheaper. At best, was achieved price stability over several years. In effect, the albums would today perhaps 15% more expensive, they would still manufactured in Western Europe.
But weighs this measly
savings to the many disadvantages?
Justify it, the loss of quality, the environmental impact of the long
transport routes, the long delivery and planning times, the
inflexible response to market changes?
Here are the stresses and annoyances of the dealers and customers who
have to toil with a damaged goods, considered in any calculation. The
main thing the manufacturer benefits, everything else seems
secondary.
The "savings" are minimal - the consequences, however disastrous!
The relocation of production to low-wage countries rarely brings the consumer thus benefits. The ridiculous price Saving he must buy usually with reductions in quality, he must lodge a complaint often and expect branded products to get foisted rogue gray imports or counterfeits.
In contrast, the
disadvantages resulting from globalization, enormous.
The entire labor market in Western industrialized nations has been
turned upside down and shaken up. Despite constant stimulus programs,
a stunning cheap flood of money and a sophisticated creative
accounting, the number of unemployed has multiplied since the
1980th
No wonder, when most industries have been formally eradicated. Hardly
any work is still considered safe - only the number of miserably paid
jobs Bad has spread like an avalanche.
You have to be very
naive if you will not see any connection regarding the ubiquitous
Deindustriealisierung and job cuts.
Even modern industrial nations such as France fall more and more in
Bedroillie. Because you just can not produce the conditions as in the
Far East or Eastern Europe there. And even during the economic
miracle in Germany, the situation is far more explosive than admitted
by the nice speakers of the government. In
Germany, about 15 million jobs insurable
missing.
Even to sell this as a success, I think is macabre.
The for over 30
years of sustained decline of the West repeatedly playing down the
hypocritical argument that in Western Europe now footwear, textiles,
televisions, computers, cell phones, Haushaltsgräte were once so
for cost reasons no longer produce, brainwashing is pure.
For it is not the low production costs are (paid for by the
exploitation of workers in the Far East) passed on to consumers in
general, yes.
Some luxury brands say meanwhile they would pay strict with their suppliers to comply with high wage, labor and environmental standards. On the other hand, is itself recognized repeatedly by experts that it is almost impossible to monitor and track the long production chain.
Who advertises
"fair production" with the so often operates eyewash.
There should be a
well-known manufacturer actually my honest, he could still return
displacement production in the old countries of
origin.
Because with decent wages to remote production sites far from home
after all provide no location advantages. It result from the fact
rather considerable disadvantages (• high transport costs,
• legal uncertainty • lower quality consciousness, •
long delivery times, • difficult quality control, • voice
and communication difficulties, • arbitrary authority, •
corruption, • technology theft, • counterfeit products,
etc.).
Productivity increases - but falling wages!
The spread of globalization lobby in March from the advantages of the international division of labor is disproved in other ways. Because since 1980 decline in the Western world, inflation-adjusted wages and pensions. Particularly affected the average earners and low wage earners are.
Taking into account that productivity has since 1980 more than doubled by technological advances, it becomes clear how catastrophic the globalization and the free trade agreement ultimately affect. Without the devastating effects of tariff reductions of the labor wages and the purchasing power today would be about twice as high (today's standard of living could be achieved with half the working time).
Since the mid-19th
century, the continuous technological progress in the Western world
brought about every 25 years a doubling of wealth - and since
the early 1980s, this rule of thumb suddenly no longer applies.
Although just the computerization and digitization triggered
breathtaking waves of innovation.
Politics
and the media make no effort to investigate this strange phenomenon
or explain.
Citizens are instead brainwash like lulled with stupidly bold
statements and propaganda phrases ("Globalization brings
greater prosperity", " the EU will bring us more prosperous,"
" the euro will bring us more prosperous," "New trade
agreements (TTIP) bring us more prosperity "etc.,
etc.).
With this stupid stick Wohlstandsgesülze the uninformed population is soaped and euthanized. From the creeping decline is deflected sent by constantly emphasized how good it but go all of us.
Here, the question is
quite different!
After 35 years of downturn it will be appreciated at the time that
globalization (tariff reduction) and the EU and the euro and the
complex FTAs gigantic wealth killers are that transform our
world into an uncontrollable casino capitalism.
We can make everything, even our shoes and clothes!
The supposedly no
alternative "international division of labor" is an aberration, a
dead end!
If the established parties emphasize unctuous always having to
respond to the "challenges of globalization", there is a fear that
they have never seriously dealt with the matter (or, what is
worse, deliberately lie to mankind ).
Because globalization is not a natural phenomenon, it has been artificially induced by tariff reduction. One need to globalization (global wage and tax dumping) not set! Because every sovereign state can escape the global race to the bottom in a simple way: by reviving the customs borders (who is well known proven over thousands of years).
Even if the SPD now acknowledges that in the traditional industrialized countries for decades, the middle-class incomes are stagnating and the wages of low-paid workers have actually declined (with all due respect, doctors, pharmacists, lawyers, architects, etc. fared no better), then would but it maybe once at the time the benefits of tariff reductions (the free trade agreements, the EU) to put principle into question.
Or could
you as yet passed another 35-year test phase, and only then, after a
total of 70 years, take stock and to dare to the old question of
principle?
What value have the candid confessions "to make policy for the people
who work hard and play by the rules keep"? The reality looks but
probably a little different. It is policy made for globalization
lobby, large corporations, for speculators for party
bosses.
Only these chosen ones to benefit from the borderless "liberalization" of binding trade agreements, the reduction of tariffs etc .. In my book "Das Kapital and globalization" I have given concrete examples of how easy it is to break the power of the corporations and the unhappy monopolization - could reverse and Filialisierungstrend.
But such measures are of the alleged mainstream parties envisaged is thought debated ?. No absolutely not. The suggestions and analyzes are hushed. Because you do not come out of the usual routine, from the branded thought patterns and donate joyful globalization lobby does not want to alienate.
A
de-globalization is at the established parties on any agenda.
Instead, it deals with other trade agreements and euro rescue
packages - without stopping once without think ahead and not to sum
up where the journey into the future is to go at all.
The ECB wants to buy even directly corporate bonds now. In order for
the companies to be raised further (they get cheaper loans). And
banks face even more in Bedroillie (which they are ever to make money
if they make the ECB all the lucrative business dispute).
"No
political will comes to the laws of economics over ", recently
said the mayor of Hamburg Olaf Scholz. He is right!
Include falling wages and pensions, precarious working conditions,
mass unemployment, the casino capitalism, the courtyards dying, the
zero interest rate policy and the cheap flood of money to the "laws
of economics". It would be really good if our elected representatives
would ask this question.
Why still clings to the theories of Adam Smith and David Ricardo?
Still our future economists is treated to the dogmas of the two founding fathers of capitalism. The theories of Adam Smith and David Ricardo are around 200 years old - and since then, the global economic conditions have changed dramatically.
The famous pioneer
of economics argued at the time, although for a free world market
from - but under very different conditions. They went from a full
employment of domestically - but above all of world harmonized
wages. These basic conditions are not given today.
The wage differences
are exorbitant. And globalization works solely on the basis of
inequality, injustice and exploitation.
With
world-equalized wages and taxes, globalization would be stone dead -
it just would be a perfectly ordinary, useful for all parties world
trade.
The propagated by Smith and Ricardo's comparative advantage, which should result from the trade with foreign countries, related solely to the use of superior production techniques and favorable climatic conditions (especially for food). This unique announcement abused the EU and globalization lobby for their excessive and counterproductive free trade fantasies.
Addendum 17. 1.
2017:
Donald Trump announced
that he would raise a 35prozentigen customs duty on imported
cars.
So is not reduced
but the purchasing power (standard of living)? Not at all! For we
must not lose sight of the counter-statement. Is again more produced
in their own country, will reduce the imported wage dumping. Falling
unemployment, wages rise in line with productivity (as it should be,
of course). Especially the covert (covered up) mass unemployment
dissolves more and more and disappear the lousy Bad jobs.
Overall, this increase earned income much faster than prices -
especially the lower and middle classes in the US may be after a
40-year period of decline then finally afford and needs no additional
side jobs more to feed the family properly.
Biased politicians
do not want to understand this relationship partout. They are
intoxicated by export successes, flirting with the price advantages
in cheap imports - but refuse to perceive the downside (ie the wage
decline and the expensive mass unemployment in their own
country).
Just today I find a little message in our local newspaper, according
to which 26 industrialized countries from 2008 to 2013 year
suffered an average pay cut of 2.4 percent (although the economy
was artificially fueled by the adventurous cheap flood of
money).
In addition, it is important to remember that no customs revenue "lost" are money. They can be used to finance the social security systems and thus the non-wage labor costs are significantly lower.
My
websites are absolutely non-partisan and
independent!
They
are not sponsored by state institutions, global
players, corporations, associations, parties, unions, aid
organizations, NGOs, the EU or capital lobby, hyped by google or
influenced by the cancel culture movement! They are also free of
advertising and fees.
Background
and analysis:
• German
Political Encyclopedia: independent &
non-partisan
• Do
doctored statistics and state propaganda form the basis of our
democracy?
• Poverty
research: Which countries with high birth rates are really doing
well?
•
The
infiltration of democracy by the Cancel Culture movement
…
•
The
nasty tricks of the anti-democrats!
•
In
Germany wages have been falling since 1980.
Why?
• Germany:
The brazen proclamation of skills
shortage!
• Globalization:
the ignorance of the facts
• Does
Donald Trump initiate the end of
globalization?
• Is
there indeed a general market
saturation?
• The
political and economic consequences of an
brexit
An
analytical consideration from German
view.
• "We
have to explain Europe better!"
• When
will the Dexit? (the withdrawal of Germany from the
EU)
•
The
rule of law becomes a laughing stock
© Manfred J. Müller, Flensburg, Mai 2016
Manfred J. Müller has been analyzing global economic processes for 40 years. He is considered a pioneering thinker. For example, 20 years ago he called for a kind of supply chain law that obliges manufacturers and dealers to only import fairly remunerated and produced goods to Germany (finally became law in May 2021). He has also long recommended a minimum profits tax for large companies on domestic sales (Joe Biden's proposal for a global minimum profits tax in spring 2021 is finally moving in the same direction, but is far too lame and will hardly be implemented internationally). Manfred J. Müller has also been fighting for his idea of wage cost reform for three decades (gradual reduction of social security contributions with counter-financing through value added tax and customs duties).
Through
decades of brainwashing, the corporate lobby has succeeded
in making radical ideologies a matter of course! A
critical look behind the scenes of political
machinations:
Through
an army of loyal politicians and sympathetic journalists and
the superiority of their opinion factories, system-owned
economic institutes producing desired statistics, etc., they
have brought about social changes and laws that only serve
their special interests. This can be seen, for example, in
the development of earned income (real net wages and
pensions have been falling in Germany since 1980) on the one
hand and the gigantic jumps in profits on the other (such as
with shares and dividends). Should it always go on like
this?
The
dreaded books by Manfred Julius
Müller...