Tuesday, August 12, 2008
economic failure of globalization
"Economic inequality is on the rise around the world, and many analysts point their fingers at globalization." As the globalization process has been engineered by corporate elites, and serves their interests, they have successfully conveyed the impression that globalization is not only inevitable but has been a great success. however, this is false. Globalization has been marked by substantial declines in rates of output, productivity, and investment growth. But the elites have done well despite the slackened productivity growth. Because globalization has helped keep wages down, while increasing real interest rates, the upper 5 percent of households have been able to skim off a large fraction of the reduced productivity gains, thereby permitting elite incomes and stock market values to rise rapidly. But it was a different story for the global majority. Income inequality rose markedly both within and between countries.
For example, in America, In the United States, despite a 35 percent increase in productivity between 1973 and 1995, the median real wage rate was lower in the latter year. The gap in incomes between the 20 percent of the world's population in the richest and poorest countries has grown from 30 to 1 in 1960 to 82 to 1 in 1995, and Third World conditions have in many respects worsened. In short, globalization of the economy has only done well for those who are rich. The rich have in fact become richer and the poor even poorer. In a rush to get wealthy, people have forgotten about the poor. For the poor have not have the chance to catch up with the rich and the rich have already climbed way higher than before.
just some pictures.
Done by: Shu Fen 2B/07
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