Impact Of Globalization On American Economy
The Impact of Globalization on US Economy
Globalization is a good thing. However, its implications on economies are not entirely rosy. There are people who have been negatively affected by globalization. Globalization has resulted to more jobs, and generated more wealth something that cannot be said of everyone. People in developed nations have been hurt by it. Americans are one such lot. Factories have closed and moved to locations such as China, Vietnam and Mexico. The factories that have remained have lowered their wages to remain competitive. Globalization has had more negative effects on the American economy compared to gains.
In America, the two top contenders for the presidency in the last election tried hard to lure voters to vote them …show more content…
The American government is culpable for furthering corporate objectives as opposed to the common citizen’s objectives. Deals such as the ones Hillary is turning her back on, have made the impact of globalization on the American middle class bad. The American economy’s growth is stagnant, so are the incomes of American workers. Worse is the surge in inequality in America (Zaccone, 2015).
Globalization is driven by market forces. The American government made it worse for Americans by entering into trade deals that allowed for totally unrestricted free trade. It did not negotiate the kind of deals that cushion the many Americans without advanced degrees or corporate investors. These are the beneficiaries of globalization. However, communities that depended on certain industries for their livelihoods and sustenance have not had a sweet taste of it. The idea that markets are trustworthy custodians of social welfare is a fallacy (Goodman, …show more content…
A currency that is overvalued, and which makes American produced products expensive in the world market compared to goods produced in developing countries such as China. On the other hand, imports are cheaper something that continues to keep many Americans out of jobs as more companies relocate production to places like China (EPI, 2013). The communist government in China has consistently undervalued the Yuan to promote itself as the low cost production destination of the world. That is something the American government has steered clear of doing to protect its economy.
Globalization cannot be stopped. That is a reality. However, totally unrestricted globalization has negative effects on some economies, especially the developed ones like America. The onus is on American government to tactfully protect its citizens from such negative effects through free trade deals that are not lopsided, and other policy measures. That is what the China has done. Below are diagrams with quotes about
Globalization is a good thing. However, its implications on economies are not entirely rosy. There are people who have been negatively affected by globalization. Globalization has resulted to more jobs, and generated more wealth something that cannot be said of everyone. People in developed nations have been hurt by it. Americans are one such lot. Factories have closed and moved to locations such as China, Vietnam and Mexico. The factories that have remained have lowered their wages to remain competitive. Globalization has had more negative effects on the American economy compared to gains.
In America, the two top contenders for the presidency in the last election tried hard to lure voters to vote them …show more content…
The American government is culpable for furthering corporate objectives as opposed to the common citizen’s objectives. Deals such as the ones Hillary is turning her back on, have made the impact of globalization on the American middle class bad. The American economy’s growth is stagnant, so are the incomes of American workers. Worse is the surge in inequality in America (Zaccone, 2015).
Globalization is driven by market forces. The American government made it worse for Americans by entering into trade deals that allowed for totally unrestricted free trade. It did not negotiate the kind of deals that cushion the many Americans without advanced degrees or corporate investors. These are the beneficiaries of globalization. However, communities that depended on certain industries for their livelihoods and sustenance have not had a sweet taste of it. The idea that markets are trustworthy custodians of social welfare is a fallacy (Goodman, …show more content…
A currency that is overvalued, and which makes American produced products expensive in the world market compared to goods produced in developing countries such as China. On the other hand, imports are cheaper something that continues to keep many Americans out of jobs as more companies relocate production to places like China (EPI, 2013). The communist government in China has consistently undervalued the Yuan to promote itself as the low cost production destination of the world. That is something the American government has steered clear of doing to protect its economy.
Globalization cannot be stopped. That is a reality. However, totally unrestricted globalization has negative effects on some economies, especially the developed ones like America. The onus is on American government to tactfully protect its citizens from such negative effects through free trade deals that are not lopsided, and other policy measures. That is what the China has done. Below are diagrams with quotes about