Just about the whole world has been wrongly in favor of globalization – at least the people who count, including Barack Obama. Other muddled or dishonest (you choose) world leaders have spoken out against rising protectionism. They maintain that protectionism in the 1930s prolonged the Great Depression, which is no basis in the truth.
Fortunately, in the U.S., intense popular pressure to protect jobs resulting in “Buy American” provisions as part of Obama’s misguided $787 billion stimulus package.
Obama’s 2010 budget would tighten taxation on U.S. companies with operations overseas, limiting incentives to do business abroad. That is good but far from enough.
It makes no sense to prop up business when there is a decreasing number of consumers. Moreover, the U.S. does not foresee the unemployment problem going away any time soon. So why is the U.S. giving money to the banks? So the bankers, the high priests of debt, can get bonuses is one answer.
Like it or not, globalization is dead – and for good reason. Those who lost as a result of globalization were the American workers.
Those who profit are the countries who export to the U.S. and the multinationals who deliver the product.
The decline and fall of Singapore
An example of a country that lives off of exports to the U.S. is Singapore. Their exports to China and other countries are mainly part of the supply chain to the U.S. When world trade boomed, Singapore’s seaport became largest hub for freighters and supertankers.
Nearly everything manufactured in Singapore is made for export. (Singapore foolishly grows none of its own food.) One out of every three workers in Singapore is a foreigner. Singapore has passed a recent law, the Public Order Act, to prepare riots and revolution in the country due mainforeign worker layoffs,.
The point was also brought home to Singapore by the riots in Thailand, which forced the international leaders at the Asean meeting to flee the conference by helicopter to avoid bodily harm.
Credit Suisse predicts a loss of 200,000 jobs in Singapore by the end of 2010.
Singapore’s exports collapsed by a crushing 35% in January. Manufacturing output fell by 29% in the first three months of the year, compared with the same period last year, and the beat goes on.
There is no way that the economies of Singapore and the U.S. will recover until the growth of U.S. unemployment stops.
A benefit of the recession is that it puts an end of globalization. Giving US jobs to foreigners has not worked, only generated profits for the multinationals.
Let’s keep America First!