Globalization Economics

Globalization has a rather simple idea at its heart. This idea has been used to enable and justify the drive of Kapital to increase the labor pool (by as many as possible) and make workers around the world compete directly with each other for the lowest wages and the worst conditions of working and living. And this simple idea is also used to degrade environmental protections around the world by giving those willing to run roughshod over our Natural World a comparative advantage- Globalization- a simple and (to many) seemingly innocuous notion, but one whose realization is now about to thrust our natural world over the precipice...

Comparative advantage was first described by David Ricardo (the founding father of Classical Economics) in  his 1817 book On the Principles of Political Economy and Taxation. He used an example involving England and Portugal: in Portugal it is possible to produce both wine and cloth with less labor costs than it would take to produce the same quantities in England- however, the relative costs of producing these two goods are different in the two nations. In England it is very hard to produce wine, but only slightly difficult to produce cloth. In Portugal both are easy to produce. Therefore while it is also cheaper to produce cloth in Portugal than England, it is cheaper still for Portugal to produce an excess of wine, and trade that for English cloth. Conversely, England benefits from this trade because its costs for producing cloth has not changed but it can now get wine at a lower price, closer to the costs of cloth.

The conclusion drawn in largess is that every country shall gain by specializing in the commodities where it has this kind of comparative advantage- and trading these goods for others.

But the truth is... it is not really the nation which gains- it is Kapital- those who reap the huge profits to be made by exploiting the backwardness of labor and the vulnerability of underdeveloped resource bases. But now, it is everyone who stands to lose.

This process becomes possible and proceeds by utilizing comparative advantage for profit to contribute mightily in further detaching ordinary people from the natural world which must ultimately support them- and substitutes (only temporarily) an utter dependency on a vast and complex network of trade for the very essentials of their daily existence.

Globalization- the current crime of method deployed by Kapital... until the game is up...

Kalinzskii