Global Economy

Fair competition (among all countries) in a global market is a complete fallacy, by any logic. Thoughtful considerations must be given to such social and economic factors as standard of living, cost of living, geographical location, raw material availability, environmental considerations and restrictions, labor laws, and import/export restrictions. Without fair and balanced foreign trade, some countries win, and some countries lose. The truth to those words are playing out on the world stage of foreign trade.

Labor cost has to be figured into the equation, as well as maintaining an adequate work force.

The reason that jobs disappear from the US to Mexico is that the latter's annual minimum wage is set at $1,557-1,658 International Dollars. [a unit of monetary measurement corresponding to the purchasing power of the $ USD in the US at a fixed point in time. (It is, also, know as the Geary-Khamis dollar.)] It is, likewise, the reason that these same jobs, eventually, disappear from Mexico to other countries, such as China, wherein annual income expectations are even lower. (In 2006, officials in Guangdong Province set minimum wage according to five classifications with the highest being comparable to approximately USD $0.60/ hour and the lowest being roughly USD $0.25/ hour. In other words, there is no way that Mexico workers, and especially not American ones, can reasonably compete in the global market.) [ http://www.countercurrents.org/spence030308.htm ]

What we've seen resulting from present global trading, is low-cost goods and services undermining economic stability in many countries. As consumers practice thrifty spending, domestically produced goods become too expensive compared to imports. This holds true in the labor market as well. Out-sourcing jobs to foreign labor has become way too common. Together, imports and out-sourcing of jobs has become an economic disaster for countries such as the U.S.

The EU (European Union) and the U.S., the two major world economies, are both experiencing the ripple effects of low-cost imports and job out-sourcing, Countries such as China and India, are seeing tremendous economic growth due to their relatively low labor cost, minimal operational restrictions, lax labor laws, and government support.

Fair competition in a global economy just wont happen, and can't happen. There are just too many variables that favor one exporter over another. Low cost and high profit will win every time over economic stability. Economic equalization, world-wide, is taking place right under our noses. At the present rate of world market progression, in the not so distant future, world economies will equalize to the lowest level. Is this part of the “New World Order”?
Sonny Clark