Over the last decade we have witnessed that the U.S. economy has become increasi

Question

Over the last decade we have witnessed that the U.S. economy has become increasingly interdependent with the rest of the world. The question is whether U.S. is getting better or worse with globalization. Some believe that globalization will lead to cheaper ways to make products. This will allow businesses to reduce prices. Therefore, consumers will benefit from globalization. Others believe that globalization will lead to loss of jobs in U.S. causing high unemployment and loss of incomes. What do you think? How will globalization impact our economy in both short run and the long run? State your arguments "for" and "against" globalization and finally summarize your view on globalization.

Explanation / Answer

Sounds to me like this question should be in the homework help section. I think you did see globalization create cheaper goods on the world market and it also transferred jobs over seas. On the one hand, it also raised the standard of living and income for other countries like India and China. Since they can produce goods more cheaply than we can and pay lower hourly wages, factories relocated there in droves. On the other hand, that created unemployment in the United States particularly among unskilled and uneducated workers. Add to that the fact that in many states we have huge illegal alien populations which have also taken middle class tax paying jobs in construction and the trades, meat packing and other industries which has created more unemployment. The middle class has been fueling the economy in the US for the last decade but as it shrinks, it is no longer able to do so. I think we are witnessing the long term affect of globalization. High unemployment, stagnant wages, credit evaporated and reduced spending.

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