The Impact of Global Economy on the U.S.
Core II Political Economy and Human Services
The U.S. economy is no longer an autonomous entity. Rather it is increasingly part of a globally based economy. This means that companies that use to existed only in the United States, like General Motors, are opening plants in foreign countries, so that they can utilizing the cheapest labor and resources they can. Because according to them it's the only way they can stay competitive. Furthermore, foreign companies are also building plants in the United States and employing the American workers.
Another problem is the fact that people in the United States subscribe to the idea that the government should not interfere with business. This is the dominant ideology even though our main competitors are successful because they have their government's backing. Their governments provide funding for research and development and for public schools, which produce competent, knowledgeable workers.
Yet, instead of learning from other countries, we cultivate hatred and resentment toward them. We fail to examine what we have done wrong. And we have done a lot wrong. General Motors ignored a report that predicted the 1973 oil crisis and continued producing big, gas-guzzling automobiles. Meanwhile, the Japanese were paying attention and took the time to invest in small, fuel-efficient cars. Another example can be found in the VCR industry. The VCR was invented by a U.S. company. However, they felt that no immediate profits could be made and so did not invest in it. Meanwhile, the Japanese were willing to make a short-term investment in order to ensure long-term profits. So in both cases, the Japanese dominate the market and we don't. Whose fault is that?
So buying a so-called "American" car does not mean that U.S. laborers made that car, since a number of American companies utilize foreign labor. It does not even mean that the majority of...