what are the main problems in the global economy and how should they be dealt with? (1 Viewer)

[Red_Dave]

I figured this would be a facinating question to ask given the varity of political opion on here. Il leave my answer untill later on.

 

[Spartacus FPV]

All trade barriers, especially subsidies.

 

[Keynes]

I'm not really sure.
There is of course capitalist expliotation.
I'd say that probably the biggest problem is neo-liberalism,both politically and economically.

 

[Billo_Really]

The main problems are the constant out-sourcing of American jobs that will eventually result in the United States becoming a third world nation!

The history of nation-states is coming to an end. We are being divided economically. Not territorially, or geographically, but commercially.

 

[Keynes]

The main problems are the constant out-sourcing of American jobs that will eventually result in the United States becoming a third world nation!

I would say this is simply another symptom of neo-liberalism and the corporate interests age we live in,it is not the root of the problem.

 

[Kandahar]

Re: what are the main problems in the global economy and how should they be dealt wit

The biggest problems facing the global economy (starting with the biggest) are:

1) Lack of globalization in most of Africa, Latin America, and the Middle East. Fortunately, most of Asia has finally caught on that this is a great thing, and their economies are booming as a result. How do we fix this problem in those other regions? First of all, in countries that don't already have democratic traditions (most of Africa and the Middle East), there needs to be a strongman dictator in favor of neoliberalism. After the standard of living subsequently improves, people will be more aware of the outside world and more able to handle democracy. In the countries that DO have democratic traditions (most of Latin America), there's really not a whole lot that can be done other than allow them to watch the neoliberal countries around them boom while they continue to wallow in socialism.

2) Global dependence on oil. Not only is it polluting our planet and warming it at an alarming rate, but it funds terrorists and nasty dictatorships. We need TEMPORARY government subsidies (did I mention that they should only be temporary?) to promote the creation of alternative energy sources to supplant oil. Other countries that are net oil consumers should do the same...or they should buy our alternatives.

3) Agricultural subsidies in the United States and the European Union amount to nothing less than full-scale genocide on many African countries. Predatory dumping practices combined with huge government subsidies ensure that Africans can't grow enough food to make a living, and therefore those who have land don't grow it at all.

4) This is sort of related to #1. Lack of information in non-globalized countries often fuels extremism and resentment of other countries. Tom Friedman makes the observation that no two countries that have McDonald's have ever gone to war with each other. Non-globalized countries typically know very little of the outside world, and are therefore less likely to understand the point of view of outsiders and more likely to go to war.

 

[Keynes]

1) Lack of globalization in most of Africa, Latin America, and the Middle East. Fortunately, most of Asia has finally caught on that this is a great thing, and their economies are booming as a result. How do we fix this problem in those other regions? First of all, in countries that don't already have democratic traditions (most of Africa and the Middle East), there needs to be a strongman dictator in favor of neoliberalism. After the standard of living subsequently improves, people will be more aware of the outside world and more able to handle democracy. In the countries that DO have democratic traditions (most of Latin America), there's really not a whole lot that can be done other than allow them to watch the neoliberal countries around them boom while they continue to wallow in socialism.

While the basis of globalization is good,it's not some wonder cure,and the culture of corporate interests that is in essence neo-liberalism.
And most of the benefits except a minor trickle down effect goes to western corporations and the elites of these countries.
I fail to see how these countries wouldn not benefit as much by investing in themselves as they do from the investment from western corporations.

2) Global dependence on oil. Not only is it polluting our planet and warming it at an alarming rate, but it funds terrorists and nasty dictatorships. We need TEMPORARY government subsidies (did I mention that they should only be temporary?) to promote the creation of alternative energy sources to supplant oil. Other countries that are net oil consumers should do the same...or they should buy our alternatives.

I agree here.

3) Agricultural subsidies in the United States and the European Union amount to nothing less than full-scale genocide on many African countries. Predatory dumping practices combined with huge government subsidies ensure that Africans can't grow enough food to make a living, and therefore those who have land don't grow it at all.

Western countries should remove most protections.

4) This is sort of related to #1. Lack of information in non-globalized countries often fuels extremism and resentment of other countries. Tom Friedman makes the observation that no two countries that have McDonald's have ever gone to war with each other. Non-globalized countries typically know very little of the outside world, and are therefore less likely to understand the point of view of outsiders and more likely to go to war.

How about we try and understand their points of view.

 

[Iriemon]

Re: what are the main problems in the global economy and how should they be dealt wit

The biggest problems facing the global economy (starting with the biggest) are:

1) Lack of globalization in most of Africa, Latin America, and the Middle East. Fortunately, most of Asia has finally caught on that this is a great thing, and their economies are booming as a result. How do we fix this problem in those other regions? First of all, in countries that don't already have democratic traditions (most of Africa and the Middle East), there needs to be a strongman dictator in favor of neoliberalism. After the standard of living subsequently improves, people will be more aware of the outside world and more able to handle democracy. In the countries that DO have democratic traditions (most of Latin America), there's really not a whole lot that can be done other than allow them to watch the neoliberal countries around them boom while they continue to wallow in socialism.

2) Global dependence on oil. Not only is it polluting our planet and warming it at an alarming rate, but it funds terrorists and nasty dictatorships. We need TEMPORARY government subsidies (did I mention that they should only be temporary?) to promote the creation of alternative energy sources to supplant oil. Other countries that are net oil consumers should do the same...or they should buy our alternatives.

3) Agricultural subsidies in the United States and the European Union amount to nothing less than full-scale genocide on many African countries. Predatory dumping practices combined with huge government subsidies ensure that Africans can't grow enough food to make a living, and therefore those who have land don't grow it at all.

4) This is sort of related to #1. Lack of information in non-globalized countries often fuels extremism and resentment of other countries. Tom Friedman makes the observation that no two countries that have McDonald's have ever gone to war with each other. Non-globalized countries typically know very little of the outside world, and are therefore less likely to understand the point of view of outsiders and more likely to go to war.

Good points, to that I'd add

5) Population explosion. While populations growth appears under control in the developed countries, in the developing world it is still out of control, and the capacity of the world to sustain the demand and pollution caused by an ever growing population is limited.

 

[Kandahar]

Re: what are the main problems in the global economy and how should they be dealt wit

While the basis of globalization is good,it's not some wonder cure,and the culture of corporate interests that is in essence neo-liberalism.

In geopolitics there are no wonder cures, but globalization is about as close to a wonder cure as you can find.

And most of the benefits except a minor trickle down effect goes to western corporations and the elites of these countries.

So? If the majority of the benefit goes to the corporation and a minority of the benefit goes to the host country, the host country is still benefiting. That's better than protectionist laws that prevent the corporation from locating in that country at all.

I fail to see how these countries wouldn not benefit as much by investing in themselves as they do from the investment from western corporations.

What do you mean by "investing in themselves"?

How about we try and understand their points of view.

We should. Globalization will allow that; protectionism will make it even more difficult to understand them. Even in cultures that are very different from our own, we understand globalized countries (China, Japan, India) much better than non-globalized countries (Iraq, Zambia, North Korea). By encouraging all countries to globalize, we will be able to participate in the cultural exchange necessary to understand one another's point of view.

There's a reason that non-globalized countries fight more wars than globalized countries: other cultures seem totally alien to them.

 

[Kandahar]

Re: what are the main problems in the global economy and how should they be dealt wit

Good points, to that I'd add

5) Population explosion. While populations growth appears under control in the developed countries, in the developing world it is still out of control, and the capacity of the world to sustain the demand and pollution caused by an ever growing population is limited.

I agree that pollution is, to some degree, a function of the population. But it's much easier to control the other variables (such as oil use) than it is to try to get people to stop reproducing.

I disagree that the world can't sustain the demand by a growing population; Malthus was wrong. More people means more minds working to solve the world's problems. You're right that there are certain parts of the world that are overpopulated, but as a whole, the world could sustain a lot more people.

 

[Red_Dave]

All trade barriers, especially subsidies.

I agree to an extent but should a degree of protectionism be allowed from developing countrys? A number of developing countrys have had there markets forced open thanks to the world bank only to have there economys screwed over by heavily subsidised goods from america and europe. Would protectionism not be acceptable in this case?

 

[Spartacus FPV]

Either protectionism is wrong or it isnt. In a "free market" it isnt, to capitalists it isnt. I know that may not be very compassionate to the "developing countries" but its my opinion, and granted its only theoretical economics that may not necessarily apply the same way to real life, that the productivity of the developed nation will help bring them up in effect. We carry them on our backs.

 

[Keynes]

Re: what are the main problems in the global economy and how should they be dealt wit

In geopolitics there are no wonder cures, but globalization is about as close to a wonder cure as you can find.

Their is nothing wrong with ending trade barriers,as long as countries build up their own resources instead of them leaking overseas.

So? If the majority of the benefit goes to the corporation and a minority of the benefit goes to the host country, the host country is still benefiting. That's better than protectionist laws that prevent the corporation from locating in that country at all.

This is just quasi-utilitarian rubbish,thier are other alternatives to western corporations stripping these countries of their resources.

What do you mean by "investing in themselves"?

Although most of the benefits of their resources to go to them,by allwoing them to develop their resources

 

[Abba Lerner]

Re: what are the main problems in the global economy and how should they be dealt wit

I'm not really sure.
. . .
I'd say that probably the biggest problem is neo-liberalism,both politically and economically.

Dear Keynes,

I agree. Edmund Phelps on 10 October wrote in the WS Journal a defense of neoliberalism. He won the Nobel Prize -- I believe on the previous day. His essay was called Economic Justice. (You can read it in my blog: http://www.ustaxreform.us/10106.htm )

My argument with Phelps is that neoliberalism has not aimed our great economies at solutions to our problems. Ron Morrison in Post-Autistic Economics Review asks for "Keynes Without Debt". In essence this would allow nations to spend and lend money into circulation on purpose. Problems could then be attacked. Inflation would be fought, not with interest and taxes alone. It would be fought with savings and subsidized supply.

Abba (the late real person) called all this functional finance.

 

[Abba Lerner]

Re: what are the main problems in the global economy and how should they be dealt wit

Individual economic rights to work, income, home, care, education, pension, etc., are not protected by nations and their central banks.

 

[Kushinator]

New economic policies can only help countries that are willing to implement them. Before we can go into theory to improve the third world, these all powerful dictators have to be replaced by some sort of population representation.

Thats how it works. You have to have a government that actually cares for the people in order to improve their social and economic standards. As shown for the last 50 years, leaders in third world africa care little if nothing about their citizens as represented in their recent history of human rights.

So if you want to know how to fix the third world economy, give the people who live their some kind of voice, that way self interest can work its magic.

You cant have people participate in national commerce if their young boys are being sent to war at age 10 or if soldiers commonly rape any female they choose. Why would you want to live in a country where your doomed from day one. And i say live as either live or die. Because death is allot less painfull than the life many of these people live.