- Aug 21, 2008
- ON, Canada eh?
Yes, Global trade is great in theory but it's broken because we allow countries like China, Mexico and the like to abuse it and break what should be a balanced trade loop and well stuff like this happens. The more layoffs that come, it just add's to the problem because it takes more folks out of being able to participate fully in the economy with proper wages in comparison to true living costs and purchasing power to buy these products so these folks seek out cheaper pricing or stop purchasing because they have no choice, which then in turn puts more pressure on said companies to cut costs further which then makes this cyclical problem worse because they still have to pay out to the stock holders. The companies greed has only shot themselves in the foot for the long term, but they don't care because they payout to stock holders in the short term and senior management gets their bonuses in the short term and kick the can down the road for the next guy. What's going to happen when no one with income higher than the slave labour countries they are producing parts/vehicles in can no longer afford to buy their products? Who are they going to replace those folks with then? Oh I know Robots. Ok but if the guy isn't working to buy your robot produced product then what? Who cares that's the next CEO's / Stockholders problem. I got my bonus and can eat for today. That's the attitude. It's a flawed system and we are finally seeing the results of this adding up over the decades and it will eventually get really ugly if we don't fix it. How this isn't a national security problem already is beyond me, the world economy in the developed nations is heavily indebted and it's all dependent on the above house of cards logic of running companies.
Originally Posted by KrisZ
Another proof that global economy is a one way street and should be limited to trade with countries that have similar values placed for worker safety/well being, benefits, retirement etc. as well as environmental protection and many other things we take for granted in developed nations.