What is Middle Class?: Politics and Globalization

Alot of the debate about our economic culture today deals with the inequality. The question that really should be answered is, what is middle class? Most things in life are well defined. How can so many get away with talking about rich vs. poor and discuss inequality in our nation and elsewhere in the world if no one can seem to define it. I understand the how conditions depend on environment; if someone in NYC makes $50,000 their PPP is lower than someone making $50,000 in rural Arkansas. How do we measure what is middle class. The only way to prove true inequality is to establish classes. If poor in America means a family with two cars, owning their own home, and having a TVs, ipods, and food on the table, is inequality an issue. This country is well enough off that no one should be hungry or homeless, but the environment we have provides opportunity. In our society everyone has a chance to succeed. While it is not guaranteed that everyone will, anyone has a chance.

I think that the true problem of inequality and class division in this country is political. Politicians speak freely about the struggles of poor or the richness of our nation. Simultaneously, these politicans hold vastly different views. If inequality exists what is the goal we as a nation have to combat it. What is the acceptable level of inequality? People will continue to get richer at the top, there possibilities are endless. People at the bottom won’t be allowed to fall through the cracks. Its not wrong to be rich.

The debate wil rage on today and forever. Politians will focus on inequality in various elections. There power to change it will be limited, there power to get elected because of it will be great. The discussion of inequality is so often based on dynamic figures and controrted facts that can be twisted. There will always be inequality, but the real problem is simply poverty. Yes the lower end can and should do better, but what happens on the top IS NOT an excuse. There is always more opportunity in this countries economy. Nothing stops anyone from going to college, finding a better job, or in someway improving there situation. There is a way. Yes often the rich can pad their purses by “taking advantage of the labor of others,” but these people are also taking advantage of the work offered by the rich. It is mutually beneficial, if there is a problem it is up to the individual to make it more beneficial for them. Initiative is hte great equalizer not social programs or fiery politicians.

Africa’s Chance

While many countries in Europe and the Americas are developed and Asian countries are well on their way, Africa lags desperately far behind. Hope remains, despite the odds. Several problems must be solved in order for Africa to stand a chance. The problems plaguing Africa must be solved and it will take a long time and must be solved in an orderly manner because only completing the steps will lead to further economic progression. Africa faces additional and unique challenges. Extra problems compound solutions offered by economist and politicians.

-Stop disease!

HIV/AIDs is ravaging the next generation and will continue to plauge the people. HIV is preventable and thus steps to prevent it our primary. It may take decades but Africa won’t develop under the current epidemic. Other diseases such as malaria are rampant and kill thousands of people. Africa’s high birthrate and death rate are natural evolutions in the population curve of developing nations but the faster their economies and healthcare improve and disease is brought under control, the faster Africa can improve its situation. High birthrates are a result of inefficiency and occer because with low incomes parents need many childern to support them. With high mortality rates from disease, HIV, undernourishment, and simply having lower odds of survival the people in Africa have more children people in the developed world which further compounds the problem.

-Government

Governece simply must improve as must relationships. Instability rocks much of Africa and corruption is rampant in many countries. Africa’s resources are plundered by a minority of elitiest holding back the countries advancement. Governemts must maintain order and provide services to people as they collect revenue. Infastruce- roads, schools, power, and water are all needed and can only be provided through government efficiency. Nations must be stable and more efficeint to encourage business rather than aid. They must prosper with growth rather than fall into insurmountable debt. Nations will go through painful changes trying to move away from dependance of foreign government and solely resource expolitation economies, but the change is inevitable at some point. Government must be strong and fair. Ethnic division and civil conflict will stifle any incentive for foreign investment. Genocide and civil war aren’t fostering environments for multinationals. Stability may require government with an edge. Stability will foster growth oportunity. There is a fine line between restriction of necessary freedoms and oppression. Governments must establish control before poeple can experience freedom.

-Focus on already developing nations
Specialization and establishing an economoy beyond subsistence farming is the only way to move forward in development. Allow countries with a leg up right now to boom, If nations like South Africa and perhaps Nigeria can develop or at least fast track their development demands for labor and services will increase and eventually spill over. Just as the US economy pulls up industrailizing nations such as Mexico and South Korea those nations can do so regionally.

-Regionalize economy in short term

This can lift many countries in the region. While not all nation states will succeed they will move towards stable governements and open economies. Likely nations will attempt to make a move towards free markets and democracy but many attempts will fail or be overthrown, perhaps many times, before being successful. It is unrelistic to think that everyone will ever “make it” but globalization affords people opportunity to live better, longer, happier lives. Right now Africa simply lags. Regionializing the effort and having truly working economic cooperations will create Africa’s chance.

-Take advantage of labor demands

Finally, to succeed African labor sources must be able to produce high quality and highly effcient goods and services. Taking advantage of the opportunities is the only way for condidtions to improve. The other factors such as improving health, encourageing good government and free economies, and regionalizaing the effort, will not help the people unless they can take the next step and become fully capable and independant. Other nations should feel obligated to give them that chance.

Expertise in Question?

Well I am well into the expert study at this point. The more I write the more I realize the potential of this study. All day while writing though I just keep thinking about Dr. Greenlaw’s look into “Whether its a race to the top, or to the bottom.” Here is my global proposition, I know his paper and research can strengthen what I am writing. I have tweaked my topic several times, but my final product deals with the relationship between political and economic success as a means of developing struggling nations. My premise is that if governments creates a stable environment and move towards freedom and openness they create the economic situations needed to prosper. Similarly economic success achieves political reforms.

Like I mentioned a bit earlier other research would greatly help me. As we go into break and begin to post out papers I would just like to invite anyone to send me their advanced works if it might be beneficially. How global is that? Our research is all helpfully to each-other and with the tools we posses, our research can make an impact on globalization’s image and even perhaps its impact on lives.

WSJ Defict News?

NEWS ALERT
from The Wall Street Journal

Nov. 9, 2006

The Commerce Department reported the U.S. trade deficit narrowed by 6.8% to $64.3 billion in September from a record high in August. Imports fell for the first time since February amid falling oil prices. Exports rose slightly.

The deficit with China rose to a record of $23 billion, pushed higher by a flood of Chinese-made televisions, cell phones and toys being imported to stock American store shelves for Christmas.

For more information: http://online.wsj.com/home/us?mod=djemalert

So what is happening. The trade gap with China widened but the deficit of trade overall decreased. Where is the influx reducing the overall deficit?

Is China really the threat that the US thinks it is? I heard today that China’s economy has a chance to overtake the US economy… in 2040, but how accurate are indicators 30 years from now?

China still faces a major test. The government still faces major shifting if China really emerges as the economic player. The politics of globalization is probably the most lagging indicator of change since it takes years if not decades for a major change to take place. I don’t think China will maintain its current growth levels. It will slow down at some point, but with the current speed of globalization, China’s supply of laborers may lose their jobs from other countries ready to pick up the slack in China. If a political change allows for job loss in China, tension among a newly formed non-communist working class could create havoc.

Global Impact?

Often times in class we have stated that globalization effects politics. I believe now several weeks further into our study of globalization that political influence is less effected than other areas. That said, I think that the main reason is that globalization is still such a new idea that the political impact is a lagging indicator. The US election has a huge potential for impacting politics in this country.

The idea of a flat world is roughly the same age as the Bush presidency. In that time the President has enjoyed alot of support from a Republican Congress. Now Congress is blue and change is likely in the near future. Speculation has it that some of the following things are likely to occur or be attempted in the next 2 years: tax hike (either an end to the Bush tax cuts and /or a raise in taxes), an immigration change (there have already been attempts and small accomplishments but look for another push probably for an amnesty plan), change in budget deficit (already this year the budget deficit was reduced but look for the Dems to try to become the “fiscally conscious party” in the this two years… doubtful because the long absence of Dem control means many are eager to implement their own spending programs for the first time since ‘94), and finally but less likely attempts for a huge government health care plan.

While the slant of this blog is normally obviously to the right I want to simply address issues and questions of the next two years and the implications they have on probably the next decade of politics in America, ergo world politics.

-Labor in America?

The Dems and ironically Bush share a somewhat similar view on immigration. The moderate and conservative Democrats, the newly elects in this Congress, will probably look to find a compromise somewhere between the blanket amnesty opposed by most Americas and the strict enforcement plans laid out by the GOP in the last year or so. Several idiosyncrasies make this potentially disastrous for the Dems. With the support of most unions and groups like the ALF-CIO the Dems must walk a tight rope between illegal immigration and offending the labor they represent. This issue could make or break the Dems in 2008 even though the GOP was favored in ‘06 on immigration and the issue panned out to be a non issue in ‘06.

-Wages and Taxes

Minimum wage will increase in the next to years and Bush in my estimation won’t veto a responsible increase. Its been along time and needs to be adjusted to inflation. In many states the local minimum wage supersedes the national wage and thus will probably have no effect. My bet $7.85 won’t happen. A huge rate would potentially hurt the economy. Taxes are a toss-up, the economy has been huge since the cuts but look for the rich to take a new hit. How will this affect the market? Ask me in a few months and years.

-Health care

Look for attempted reform but not the universal solution a lot of people want to see. The private market is too strong Bush is too resolute and it won’t happen but there may be more…

24 Hour News

The media. Yes like globalization the media is everywhere, all the time. Turn on a TV anywhere in the world there is a good chance you can get access to CNN or the BBC. Even in the world of sports, ESPN has 24 hour sports news and even channels dedicated only to NFL football. The amount of information accessible in this modern era is nothing short of overwhelming, but why then does watching news often yield us little or no benefit.

My father who’s a military came home from work one evening and the family came together for dinner. Our dinner table is normally, well lets say vocally active. When my mother asked my father about work he went on about a coup in an African country, honestly I don’t remember which country. He continued on for several minutes about why the coup was taking place and the various techniques and US responses and feelings about it. After several minutes I finally asked. WHAT. He didn’t understand and obviously I didn’t either. I said “dad I was watching the news for 2 hours today,” as I often do before and after school and during and in between activities on a lazy, “no one said anything about a coup!” Well sure enough it happened. While I don’t recall anything said on the news instead of covering an African revolution, mostly because it wasn’t covered. I’m sure there were plenty of human interest stories about a man struck by lighting, a Midwestern storm, and a traffic jam, all stuffed between normal days talk of the economy, government, and events.

I turned on the news to hear a 10 minute story about Madonna adopting a baby but on an average day I will miss crucial stories about our world. The information is out there but so is the service to deliver to me. When its worth my time I seek out the answers and look, but when I don’t even know something happened or don’t have an opportunity to do anything more than listen to the headlines. I have a demand for this type of information and others do too. When will the 24 hour news channels give us more news. While I haven’t turned away I am dissatisfied.

Research

Type of Source?

Encyclopedia of fact based sources
Prespective?

Various perspective

I intend on using sections from the case studies and the politics and international trade for my research

Citation

Vaidya, Ashish K. Encyclopedia of trade labor and politics

 

 

I still haven’t decided upon a focued question for this paper.  There are so many aspects.  I would like to examine the driving forces of the continuation of globalization Friedman gave us the flatteners to get us to today but what’s next?)  I am also considering a compartive analysis between countries such as a third world/developing/develpoped nations, comparision based on regional geography, or a comparitive anaylsis of governement policy or MNC’s as driving forces or actors of globalization.  PLEASE HELP!!! FEEDBACK IS MUCH APPRECIATED!  WHAT IS NOT BEING ADDRESSED THAT I CAN TAKE CARE OF!?!?

Labor in America

Before class today (this has taken weeks to post) there was an intellectual struggle. Between good and evil? Perhaps not but an important topic of discussion. With “The World is Flat” down we have all read the concepts and heard about people being affecting, but we haven’t really discovered why. It’s happening yes, we can see what has happened but we all have our assumptions and theories. What is next? What questions are to be answered? Will I get that essay finished in time?

A very important factor in the globalization is the debate over the American Labor force. While world wide many countries experience a growth of jobs due to globalization some believe that the US is experiencing loss particularly in the manufacturing sector. While thousands of factory and labor jobs flee the US, miraculously unemployment in this country is at a low. Compounding the debate even more is the issue of immigration. Much of the immigration debate deals with immigrants working jobs that some believe “no American’s want.” It’s amazing just how vast the American economy alone is. Whatever can be said about anyone sector has a reaaction in another. While certain types of jobs are being outsourced and manufacturing is being offshored many factors play into the question… why?

We have found that through advances in technology it is easier today to communicate and collaborate, but how does that change the dynamic of the blue collar American worker? In all reality I think it has done very little. The rest of the world has started to catch up and specialize. Meanwhile American industry has “been hit hard.” But have we really? Is globalization really to blame or is it only a piece of the puzzle?

What is poor in America today? What is hard working in America today? The United States can often define luxury across the board, but are standards of living our rated lower than several countries (I think we are ranked 6). Everyday we hear about the poor in America, but when was the last time we defined what poor really is? Is it an income? A quality of life? I truly believe that if you ask what poor was you would get many different answers. The same goes for every class in our 3(ish) class society. Some may say a rich person makes $500,000 a year. Others may say a rich person makes $90,ooo year. That is quite a broad spectrum. What is middle class; I think that may require a dedicated blog entry itself. Most importantly though, what is poor and what is poor in America. While it is impossible to deny there is homelessness and often times hopelessness, poor in America is rich in thevast majority of the world, and often in very developed and prospering countries. Have you ever been to a house in America without electricity or a TV? Or less a hosue without access to clean or running water? While poor in America is nothing I aspire to or hope upon anyone, it is not the struggle for survival it once was or potentially could be.

As we have the luxury to complain in America how bad is it really. While jobs are shipped out and workers become unemployed, how much blame is ever placed on the American worker. It takes a brave individual (or any non politician) to simply say it often is our fault! While American’s work longer days than most of their European counterparts it is usually within a few hours a week difference. 40 hours a week is considered full. In unionized sectors higher than average pay and benifits are expected. But at what point is it deterimental to the American laborer.

My highschool built a new track over the summer. Southern Illinois is in a lot of ways unchanged by globalization. Many work labor jobs, standard weeks, and fight for benifits. Unions in this country are a brotherhood. There bond is strong but are there means always justified? When another union not in our town went on strike a sympathy strike was called. Workers “sacrificed” their hours for better circumstances for their brethren. After a long period of inaction our school was still trackless and alternative labor was found. The track was finished. The track is magnificient and rumored to be less expensive than the original labor estimated cost. The workers got paid for their unemployment by their unions (really paying themselves back in dues), but were detremental to themselves. Refusal to do more, and demands to get more is not the formula for success in any situation that I can fathom. Outpricing ourselves from the manufactoring sector or in any manual labor specifically (gardening, fast food, etc.) creates a void to be filled by someone else, whether its Mexicans in DC or Indians in Banglore. In response to my argument many would say that the American worker is under paid and needs a so called “living wage.” If we cannot possible pay our selfinduced demand, we cannot pay it. Bussinesses don’t survive living in the red because of manufactoring or labor costs. Its an evolution, survival of the fittest.

Out pricing by labor in the US is a major factor in the offshoring of manufacroting jobs. While US workers cannot compete with lowest wages in other countries with minimum wages in america, not all off shoring can be blamed on America and corporations.

In the recent senatorial debate between Allen and Webb, Webb mentioned globalization and its nasty effects on the american worker. Rather than embracing gloablization many politicians are scared of it. Fear is deterimental to our response and evolution. If we embrace globalization we can survive the nation’s job shift away from manufactoring and continue to lead the world economy.

Headlines say it

NEWS ALERT
from The Wall Street Journal

Oct. 6, 2006
U.S. nonfarm payrolls expanded by 51,000 in September, weaker than expected, though prior months were revised higher. The unemployment rate slipped to 4.6% from 4.7% in August. Average hourly earnings increased 4.0% from a year earlier.

The Labor Department report suggests payrolls growth continues to slow as the
economy cools from its rapid pace earlier in the year.

For more information, see:
http://online.wsj.com/article/SB116013687106084804.html?mod=djemalert

Wages and jobs up.  Wahoo.  This economy is a strong economy.  Why are people struggling to believe that.  There is an attitude and a group in this country that will be pessimistic no matter what.  Reality, believe it or not, is that a great economy will have its problems, problems are inevitable in any economy.

I think, and don’t be shocked by this, rich people are allowed to be rich.  People at the top are succeeding, is that really as terrible as it seems?  The people that employ us, the people with great ideas, the people with the courage to start ventures and risk their money; they are allowed to succeed.  While not everyone is “legit” rich (old money…) ironically these are the celebrities and often untalented or political.  How can people that champion the name Kennedy say what they do about money and influence.  If we want to have a discussion about rich and poor, we should stop hearing bad the rich our from the rich and how needy the poor are from the rich.

Economic Growth; the Dow Hits All Time High

I was watching “Your World With Neil Cavuto” where a round-table discussion was taking place. The topic at hand revealed several interesting points, 2 of which stood out. 1, the Dow Jones hit an all time record soaring high. 2, (and I paraphrase) “the US economy has grown 20% in 4 years. That 20% growth is equal to the entire Chinese economy.” That statistic is one of the most powerful things I have heard in my time here. While I follow geography, politics, and economics, I am still amazed by that. In FSEM100J we talk about China and India and their tremendous growth, the same Chinese boom is retaught and reinforced again in my geography class, and my political science professor wrote a book about China. China has exploded as a focus of American academia (as we heard President Frawley’s calls for Mandrin) and economics, yet despite that, the American economy, which I later heard called “weak and failing the American worker” by a US senator from N. Dakota, is growing bigger and faster. While the world maybe catching up America is the locomotive pulling it along. As far as the world being flat… it will be easier to lay track for the train on a level surface.