INSIDE BUSINESS

Is America Losing At Globalization?

Free trade used to seem like a good thing for U.S. businesses and consumers. Now we're not so sure.

By Daniel Gross | NEWSWEEK

Published Aug 30, 2008

From the magazine issue dated Sep 8, 2008

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Discuss

Posted By: Uncle B @ 10/01/2008 11:19:23 AM

Comment: number 1 son just got back from China, saya they hafve much better, American style, Chinese built cars with much better pollution ratings than ours, much better but crowded public transportation, more and larger variety of food, great accommodations, better University level learning, safer streets, even in the slums, better, cheaper cuter younger hookers, very good night club entertainment, good beer, harder workers at school, cleaner most places, inadequate refrigeration in some stores, - mostly a good report indicating that we Americans can relax into a warm glow of oncoming obsolescence and not worry so hard about being number one. The Chinese have us out ranked in almost every field, and because of their massively larger population pool, graduate more top honors students with amazing abilities from Universities than we have grade school graduates with mediocre abilities. Simply put, they have our asses whipped and will pull ahead of us with stunning speed, leaving us fiddling with "Windows" as the sun sets on the American Empire that didn't quite make it into being the greatest super power in the world, only the most corrupt Empire in the world!
Posted By: Kanan Divecha @ 09/12/2008 7:27:00 AM

Comment: This 8-person global economy crew will not be entirely from the US. In all likelihood they will represent one or all of the BRIC nations. Is the US ready to deal with this scenario? Well, it's time the 'great nation' readies itself with padded soles to deal with the sores when the worn-out shoe is on the other foot. Ouch! It hurts already. Kanan Divecha, Mumbai, India
Posted By: tinaweha @ 09/11/2008 2:40:51 PM

Comment: America is not losing at globalization, BUT AMERICANS ARE. Individual everyday people, like my children and step-grandchildren, are basically screwed. The only jobs that have any stability are jobs that cannot be exported (like hairdresser or day-care worker). These are jobs where you have to actually stand or sit and touch the customer. But, the writer's question was: Is America losing at Globallization? We only lose at globalization if America continues to be the Lone Ranger. If America continues to be the sole contributor in times of need, if America contiues to be the police chief, if America doesn't demand that Japan and Europe defend themselves against invasions, we will be (are?) bankrupt. If America continues to go to war so Dems and Reps can line their own pockets... we will certainly lose.
- Posted By: tinaweha @ 09/11/2008 2:44:31 PM
  
  Comment: Dear Webmaster, could you put a f(x) into this board? I would like to have a spell-check f(x). Thanks.
Posted By: RO in Reno @ 09/10/2008 1:37:43 PM

Comment: The concept of Globalization is so short sighted it is mind boggling that America would buy into it.
We now call trickle down economics "supply side economics, and it works, the problem is America is no longer the supplier China is.

This dates back to Nixon when we were told the US was going to become a "service economy" taken several steps further by Reagan and now taken to an extreme by Bush.

The loss of a broad based manufacturing sector has effectively eliminated millions of consumers as a part of the one thing that drives the economy..consumers.

Globalization is driven by greed and the search for cheap labor, not brains or any concern for the future of America.
- Posted By: tinaweha @ 09/11/2008 4:45:27 PM
  
  Comment: Also, I should have added that I was a 50y/o college student when we had the WTO "Battle in Seattle". I knew about the horrid slave-wages paid to Asian workers in Gawd-awful sweatshops, but I didn't quite understand why the "rabble" was rousing and breaking windows in downtown Seattle. If I could go back in time, I would be in the Seattle protest/ peaceful demonstration... haha... with a gas-mask and kevlar. I would have been walking up and yelling at "the man" as well as the 20 y/o's. I would have been the first person in jail and I would have given one hell of an interview to 60 minutes.
- Posted By: tinaweha @ 09/11/2008 4:41:01 PM
  
  Comment: Dear Ro, I have to add that Nixon, CLINTON, and Bush had hand in this (the sellout of the American People). I believe that Walmart (another Arkansas native) went crazy with buying things from China during the Clinton Administration. (I'm not a Walmart shopper for political reasons so I'm not sure the exact year it happened). I am a Libertarian and I will not slam one party without slamming the other.
Posted By: amrishmaceo @ 09/06/2008 4:52:43 PM

Comment: Cambodia cell phones are better because networks are newer. Try India. Call are hard to get through. So would you say India is on the decline now.

For every technology we have in the US there are at least 10 places that have better. The overall is what counts.

When one country gets an intel, microsoft, motorola, TI, google, Apple.... and so on all under the belt then we should be concerned.

Amrish
Posted By: nawawimohamad @ 09/04/2008 1:09:08 AM

Comment: In stubbornly trying to be the master of this world, the US has to face the repercusions. If it continues to be in a state of denial the ultimate downfall of the US is unevitable.
Posted By: aortizsedano @ 09/03/2008 2:47:27 PM

Comment: Sweeping medals at farming? high tech? and higher education... maybe only in the field of branded goods.
Farmers in the US are only superior that their counterparts in other parts of the world because of the huge aids they receive from the government.
Amazing High tech can be found elsewhere, in Europe and Asia, its not a monopoly controlled by US or US geniuses. As for Higher Education... doubtful... this is only true for post-graduate degrees; most foreigners that immigrate to US and attend Public Schools have a visible advantage over US kids of their same age.
SO, the only thing left are branded goods, nice one.
Posted By: Tea6 @ 09/03/2008 11:47:15 AM

Comment: Free trade and globalization was accepted at first because the theorists told us it would benefit the US. People were told that they could move from lower skilled jobs to higher skilled jobs. Except that now the higher skilled jobs can be outsourced with the internet. Free trade gave us savings at Wal-Mart but took the savings away due to higher oil and commodity prices.

It has been a grand experiment. After 30 years we can now see the results with our own eyes. Free trade is a big win for corporate profits and the top 1% and a disaster for the lower 90% of Americans.
- Posted By: tinaweha @ 09/11/2008 4:50:55 PM
  
  Comment: Dear Tea6, yes, yes, yes, yes, and yes you are so right.
Posted By: copper454 @ 09/03/2008 9:49:23 AM

Comment: 5 things Americans are doing to shoot themselves in the foot, so they can't compete in the world:

1. Addiction to credit cards & "stuff". People in prosperous countries SAVE their money. American spend more than they have to have the newest shoes, TV's, SUV's, entertainment, etc.

2. Blaming politicians instead of taking responsibility themselves. Americans would rather see Bush as "evil" and Obama as "savior" than look at their personal decisions. As long as they continue to try to live fat rich lives, they'll always blame the current politician's for their own problems and elect new ones.

3. Subsidizing failure. When a corporation in America is irresponsible, they get a bailout. Americans spend billions of dollars bailing out auto companies, airline companies, mortgage companies, for the companies' failures. This sends a message to CEO's: "Hey, don't worry about it, just collect your paycheck and if you fail, you'll get bailed out by taxpayers".

4. Americans are so addicted to driving their giant cars and doing so little exercise that they make themselves wholly subject to fluctuations in gas prices, and cost themselves millions in health care resources in the long run. Over time, they become fat and lazy. Then they blame politicians.

5. Spending hundreds of billions of dollars to let the rest of the world "free-ride" off their own military budget. Americans have military bases all over the world, and fight needless wars for "democracy". Why does America need to spend tens of billions to have a military base in South Korea? South Korea has twice the population and FORTY times the economy of North Korea, so they can protect themselves. But it's easier to free-ride off American taxpayers paying for their national defense. America out-spends the rest of the world combined in military ependitures, but anybody who tries to change this will be labelled as "soft" and defeated in the polls. Thus the problem continues.

America, you are hurting yourselves. It is not globalization that is the problem; you need to fundamentally change and do the things that successful countries do!

Or continue to blame politicians; that's easier to do than make personal sacrifices, isn't it?
- Posted By: tinaweha @ 09/11/2008 4:54:59 PM
  
  Comment: 6. Devaluation of the dollar through "printing presses" (yes I know it's done with a keystroke).
  7. Watching television rather than reading and watching people around them and thinking for themselves.
Posted By: copper454 @ 09/03/2008 9:21:35 AM

Comment: Overall, globalization is a healthy thing. Prosperous countries that trade with each other are less likely to go to war against each other and more likely to cooperate. Economic opportunities in many developing countries are better than ever.

The U.S. just needs to adjust to the mentality that there are other countries on the globe, and while we might not be the only superpower forever, we really don't have to. Britain is wealthier with a higher standard of living for its people than a hundred years ago when it was the prominent superpower in the world.

As long as we pursue good economic policies (engaging in free markets, investment in education, avoiding dumb wars that cost billions, fiscal responsibility, investment in infrastructure, low taxes), we'll be fine.

Personally, I'd rather our country had the lowest poverty rate than the largest GDP.
- Posted By: tinaweha @ 09/11/2008 4:56:41 PM
  
  Comment: Ummmmm, copper... are you still in college?
  - Posted By: tinaweha @ 09/11/2008 4:58:53 PM
    
    Comment: Rather than taunting you, I should have asked, "How can we have the lowest poverty rate if there are no jobs for people without law or medical degrees?"
    - Posted By: tinaweha @ 09/11/2008 5:00:27 PM
      
      Comment: I should be even more clear. How many people do you know who work in a manufacturing environment?
Posted By: Mijenny @ 09/02/2008 11:44:14 PM

Comment: My middle class job in Michigan went to Mexico. I live on my deceased husband's pension. I don't have a job so I don't pay state or federal income tax or social security tax . My house is paid for and I don't pay property tax on it because my income is below the poverty level. I get food stamps. I have no shame. My husband and I worked and paid our taxes. I enjoyed spending the summer at the beach. I like free trade.
- Posted By: tinaweha @ 09/11/2008 5:25:25 PM
  
  Comment: Mijenny, sounds like you went to Mexico, too. I understand that it is not your fault that your job went to Mexico, but your logic is illogical. Wouldn't you rather have money coming in, having your self-esteem, and be doing something other than drinking Margaritas? Jenny, you sound like a former baby-boomer hippie, as i am. I find it sad that you don't care one whit about people other than yourself. Also, you would have a better chance of continuing to receive your dole (for the rest of your life) if we had more secretarial jobs, manufacturing jobs, construction jobs, shoe-shining jobs,, banking jobs, checkout-counter jobs, etc. than if we had very few of those jobs. The only thing that can be done is for congress to pass legislation (haha joke) that would require a certain amount of manufacturing to be done in our country... or the corporation would be penalized in some way (denied access to market, or punitive tax or something similar). I was told that the food in Switzerland is made in Switzerland, though I didn't look at every label on every shelf, so I'm not sure how the Swiss System works. Also, Switzerland probably doesn't owe everything in their vaults to China. I'm not sure how it could work in The States, but something MUST be done, if for no other reason than for national security. We need to be able to purchase boots for our soldiers, and we shouldn't need to have them made in China. I'm not sure if our soldier's boots come from China or Brazil or the cobbler's store in Milan... It's just a random example. What if we had to go to war with (fill in the blank) country we would need to convert an "American Auto Plant " (Ford, GM, or something) into a factory for tanks. It appears that we already have a system in place for auto makers... Japanese cars are made in the US... I haven't followed the laws/regulations on this... but I feel more comfortable knowing that we have Ford and Chevy up and running as well. Corporate Bigwigs and politicians will sell out their own companies because they can afford Switzerland, while the rest of us peasants pray for a miracle. Jenny, you better hope you don't outlive your money.
- Posted By: randy032 @ 09/03/2008 2:22:12 AM
  
  Comment: This is a perfect example of the senseless attitude that had allowed bad economic and government policies that has seriously damaged and removed our nation???s standing from being the most powerful economy . A nation known as the financial center and largest lender to a country that is teetering on the edge of economic collapse and is being sold to the emerging East nations at auction. You have to start thinking about the future generations, you children???s, grandchildren that will still being paying off the trillions of dollars of our nations debt. I also don???t think you retirement income will go very far when your looking at $20.00 for a gallon gas or paying10.00 for a loaf of bread.
  - Posted By: tinaweha @ 09/11/2008 5:29:57 PM
    
    Comment: I didn't see your reply. I agree with you completely.
Posted By: randy032 @ 09/02/2008 7:18:28 PM

Comment: History shows the world great empires usually collapse to their ruins approximately 200 years after there establishment. All it???s going to take now is another natural or manmade disaster, like a tsunami wave , major earthquake, or terrorist attack and our beloved country could be on life support. This scenario has already been foretold, it is all in the scriptures of the Holy Bible. When are people going to realize they need to ask for God???s loving mercy and forgiveness before it 's too late. We need allot of prayers to help this country survive
- Posted By: tinaweha @ 09/11/2008 5:36:38 PM
  
  Comment: I'm trying to be less sarcastic than I usually am, but if heaven is such a great place why are all the devout Muslims, Christians, Jews, who am I leaving out?, do Buddhists and Hindus believe in heaven... yeah, I guess they believe in Nirvana... and who can blame them... Kurt Cobain was a blathering genius... OK, let me start that question again: If religious people believe so much in God/Allah/? why are they not going to heaven right away? Why are they staying on earth to tell us to pray? Dear God (and I do believe in God), don't pray, instead DO.
Posted By: BIGSRBIN @ 09/02/2008 7:15:08 PM

Comment: BIGGEST FOLLEY OF ALL TIMES. WE EXPORTED OUR TAX BASE TO CHINA. CITIES AND TOWNS HAVE NOBODY TO TAX ANYMORE EXCEPT HOMEOWNERS WHO ARE IN DEBT SO DEEP THAT THEIR GRANDCHILDREN WILL NOT BE ABLE TO PAY THE DEBT IN THEIR LIFETIME.. WALMART GETS TAX ABATEMENTS WHILE CRUSHING THEIR COMPETITION TO EXTINCTION. I THINK THE FAR RIGHT WILL HAVE TO CHANGE THEIR POSITION AS TO WHEN LIFE STARTS, AT INCEPTION OR WHEN YOU START WORKING AT WALMART. THIS COUNTRY IS HEADING INTO OBLIVION AND WE JUST STOOD BY.
- Posted By: tinaweha @ 09/11/2008 5:31:05 PM
  
  Comment: If I weren't allergic to alcohol I'd drink to that. You have nailed it.
Posted By: randy032 @ 09/02/2008 7:14:30 PM

Comment: History shows the world great empires usually collapse to their ruins approximately 200 years after there establishment. All it???s going to take now is another natural or manmade disaster, like a tsunami wave , major earthquake, or terrorist attack and our beloved country will be on life support. This scenario has already been foretold, it is all in the scriptures of Holy Bible. When are people going to realize they need to ask for God???s loving mercy and forgiveness.
Posted By: revealeddeception @ 09/02/2008 6:30:37 PM

Comment: There was never any intention of free trade actually strengthening the United States, it was a plan to institute world dependency and world government.
- Posted By: copper454 @ 09/03/2008 9:24:25 AM
  
  Comment: wow, conspiracy theory!
  
  I think it was the aliens at Roswell.
  - Posted By: tinaweha @ 09/11/2008 5:40:48 PM
    
    Comment: Actually, I believe that the conspiracy theory is not a theory. It is a real conspiracy. Translation: revealedDeception is right.
Posted By: My_Senses_Fail @ 09/02/2008 2:44:53 PM

Comment: Great piece! Hopefully it will wake some of the Politicians up. America needs to finally see that it's falling apart - look at the economy! The Auto Industry is a prefect example - closing American facilities and opening new one's in Mexico and India --- need I say more? It's nice to spend billions of Dollars a day on a useless war - if one can afford it. America cannot.
Posted By: wooddoo @ 09/02/2008 12:27:15 PM

Comment: The fact that there is such a piece at all shows how arrogant Americans are, always believing they should be the boss of everyone else for all eternity.
- Posted By: tinaweha @ 09/11/2008 5:48:33 PM
  
  Comment: Americans are not arrogant. You and people from overseas get that impression by way of television. Do we have a lot if ignorant goofballs? Yes. However, Americans (maybe we should exclude LA) are usually kind, helpful people.

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Is America Losing At Globalization?

Discuss

Posted By: Uncle B @ 10/01/2008 11:19:23 AM

Posted By: Kanan Divecha @ 09/12/2008 7:27:00 AM

Posted By: tinaweha @ 09/11/2008 2:40:51 PM

Posted By: tinaweha @ 09/11/2008 2:44:31 PM

Posted By: RO in Reno @ 09/10/2008 1:37:43 PM

Posted By: tinaweha @ 09/11/2008 4:45:27 PM

Posted By: tinaweha @ 09/11/2008 4:41:01 PM

Posted By: amrishmaceo @ 09/06/2008 4:52:43 PM

Posted By: nawawimohamad @ 09/04/2008 1:09:08 AM

Posted By: aortizsedano @ 09/03/2008 2:47:27 PM

Posted By: Tea6 @ 09/03/2008 11:47:15 AM

Posted By: tinaweha @ 09/11/2008 4:50:55 PM

Posted By: copper454 @ 09/03/2008 9:49:23 AM

Posted By: tinaweha @ 09/11/2008 4:54:59 PM

Posted By: copper454 @ 09/03/2008 9:21:35 AM

Posted By: tinaweha @ 09/11/2008 4:56:41 PM

Posted By: tinaweha @ 09/11/2008 4:58:53 PM

Posted By: tinaweha @ 09/11/2008 5:00:27 PM

Posted By: Mijenny @ 09/02/2008 11:44:14 PM

Posted By: tinaweha @ 09/11/2008 5:25:25 PM

Posted By: randy032 @ 09/03/2008 2:22:12 AM

Posted By: tinaweha @ 09/11/2008 5:29:57 PM

Posted By: randy032 @ 09/02/2008 7:18:28 PM

Posted By: tinaweha @ 09/11/2008 5:36:38 PM

Posted By: BIGSRBIN @ 09/02/2008 7:15:08 PM

Posted By: tinaweha @ 09/11/2008 5:31:05 PM

Posted By: randy032 @ 09/02/2008 7:14:30 PM

Posted By: revealeddeception @ 09/02/2008 6:30:37 PM

Posted By: copper454 @ 09/03/2008 9:24:25 AM

Posted By: tinaweha @ 09/11/2008 5:40:48 PM

Posted By: My_Senses_Fail @ 09/02/2008 2:44:53 PM

Posted By: wooddoo @ 09/02/2008 12:27:15 PM

Posted By: tinaweha @ 09/11/2008 5:48:33 PM

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