Globalization

Clyde Prestowitz uses a linear projection of growth for the global economy. It brings into question the positioning of world development. Is the United States destined to become a backwater of the world economy? Doubtful. An essential condition for long-paced development in underdeveloped Countries remains the build of native Consumers, who are both existent and capable of purchasing the Consumer products. The Consumer markets of the Developed economies are relatively saturated. The Payscales of the Developing nations remain insufficent to substitute as market Consumers, and the residential infrastructure still does not exist to utilize the Product lines. Dare I say that real labor unrest must occur in China, India, Brazil, etc., before both domestic and foreign business provides a Consumer-level Wage?

Arnold Kling carries the banner for Crop Growers, claiming the horror of their losses from unharvested fruit. To state Immigration enforcement reminds of the Smoot-Hawley tariff, though, may be a bit much. The need again seems to be need of a Living Wage for Pickers, something which could even interest Americans. One could imagine a plan could be designed to pay Those drawing Unemployment benefits a premium for picking Fruit and Vegatables.

Greg Mankiw gives an excellent Address which does not actually say much about the relationship between Desired Prices and actual Prices. Everyone will likely say I do not understand the impact Globalization has on Pricing, but I must present my two cents. Globalization presents all the trappings of a Department store Sale. We have an excessively large Consumer market banded across a wide range of technological levels. Selling on the world market is not a question of meeting a Consumer preference, Product price devolves into a simple function of Time, where the Seller sets the product price based solely of the Time frame in which he must clear the shelves. Competition centers on Inventory management and the Period of Production replacement of Goods. Economists sometimes get too centered on the technical models, and cannot see the forest for the trees. lgl