Has globalization hurt America's workers?

Yes

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by David Elder

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Globalization is a word first coined in 1962 that was meant to convey a worldwide goal of peace and prosperity. Somehow the word is now used by business leaders to portray the breaking down of barriers to free trade, and the encouragement of competition. The theory behind globalization, a nicer word for outsourcing, is that it will not only improve the bottom line, but lead to greater value for the consumer. Nothing could be further from the truth.

The concept of "outsourcing" has negatively affected the economy of the United States in all but the upper class. Whether it be in Mexico, China, India, or any one of a number of other countries around the globe, the outsourcing of manufacturing results in virtual slave labor due to broken promises and unscrupulous business practices.

Ask any hourly wage paid worker in America what they think of globalization, and you're sure to get an earful. American business argues that labor costs are out of control, and that to stay competitive they must lower the costs they pay to produce their goods. What they always fail to add to their argument, are the windfall profits that are realized by cutting their costs of production by hundreds of percentage points, and how those savings will never find their way into the pocket of the consumer.

Examine a typical thirty dollar an hour job in the United States that involves the manufacture of automobile parts. When that work is transferred to a Mexican maquiladora manufacturing plant, owned by the same American company, the wages for production plummets to five dollars a day. For the American worker the wage for an eight hour day would be $240. If the Mexican worker worked an eight hour day, that would be a savings of $235, but of course the Mexican would be expected to work much longer.

Manufacturers also save on the cost of safety equipment and costly programs which emphasize safety for their workers. No such concerns are bothered with on the floor of the ever expanding world of American owned and sponsored sweat shops throughout the world. The savings realized by companies who resort to such tactics are enormous. Forgotten in the celebration of record profits, are the workers who originally ensured the success of these same companies with their honesty and hard work.

* The Inception of Outsourcing

While Americans enjoyed and shared in the prosperity of the companies they worked for, behind the scenes a new business model took form that discarded the notion of loyalty and product quality, placing sole value on short term profit. For the American worker, the story played out across the nation in much the same way.

Training became a thing of the past; effective management that included compassion when called for was replaced with cutthroat efficiency. Quality became secondary to quantity. Buoyed by their apparent success on the quarterly earnings reports, business advisors looked for new ways to cut costs. Loyal workers, who had once been an asset, were now considered "overhead" despite having ensured the company's success with relatively little reward.

Phrases such as, "Just be thankful you have a job." swept the nation as our political leaders encouraged thirty year employees to go back to school to make themselves more marketable. Those same political leaders were responsible for passage of legislation favoring big business to the detriment of the citizens in their constituency.

Twenty years ago, the American model for business was a glowing example for the world. It was hoped that the standard of living in other countries less fortunate would begin to rise once technology spread and their governments realized the advantages of a capitalist economy. In fact, that has happened to a great degree, but not in the way envisioned by social architects.

* The Unforeseen Consequences of Globalization

Globali zation has become the Great Leveler. The economic level we are achieving in America is plummeting, approaching the personal purchasing power of the slave labor employed in outsourcing capitals around the globe. In this way, we are reducing our standard of living to the lowest common denominator, rather than raising theirs to ours.

Meanwhile, business leaders glad hand each other, congratulating themselves on cutting the fat, as families in all nations struggle to survive. Around 3 million American millionaires bear testament to the inequity of the distribution of wealth in our country. The other 298 million wonder what hit them, why they suddenly can't afford to send their kids to college, and why America can't seem to produce a good automobile.

This economic Caste system will only worsen if citizens allow their politicians to reward American businesses for making short sighted decisions though tax advantages and backroom agreements. We should make ourselves heard at the ballot box, electing officials who insist on a fair wage for an honest day's work, and bringing back the quality that made American products respected around the world.

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