Capitalism’s globalism contradiction centers on Executive’s and Board of Director’s obligation to maximize profits and their obligation to their employees, their communities, and the nations of their origin. Failure to consider the implications of this contradiction provides the left with a powerful criticism against capitalism. In the United States, this contradiction is exacerbated by our high labor costs and benefits, safety regulations, environmental regulations including environmental impact assessments that increase both the costs and time required to open a facility or project, financial system regulations, land use and zoning regulations, and past high corporate taxes. The relationship between profit and societal obligation is only one component of capitalism’s globalism contradiction.
Another aspect of capitalism’s globalism contradiction is the incredible economic success of western civilization, especially in the United States, since the start of the industrial revolution. Until the 1960’s or 1970’s, globalization was not a significant issue in relation to competition and market share for corporations in the western world. Consequently, costs associated with land, labor, and capital were comparatively inconsequential strategic considerations compared to today’s markets. Costs of doing business were evaluated only in relation to competition in the United States and other western industrial powers. For example, the big three US auto makers competed among themselves for US market share and labor. Labor union contracts for wages, benefits, and working conditions that often precluded effective discipline and quality control were virtually identical throughout the US auto industry. The result was high industry wide wages, benefits, and job security. As countries like China, South Korea, India, other Eastern Pacific rim countries, and parts of the old Soviet Union emerged as competing centers of industry, the cost of land, labor, and capital became a competitive liability for western industry.
Finally, North American and European capitalists are harnessed to strongly unionized labor forces unwilling to negotiate lower, more globally competitive wage, benefit, and work condition packages which could have slowed reductions in US manufacturing and plant closures. This issue is complicated by the success of western capitalism causing high costs of living and the expectation of high disposable income to finance the good life. These two factors make efforts to make our labor costs more competitive in the global market difficult. Western capitalism’s success also amplifies capitalism’s globalism contradiction when faced with emerging markets for our products and competition with our products throughout the world.
Capitalism’s globalism contradiction is profit versus support of the labor force that makes their products or provides their services and loyalty to the communities and countries of their origin. Interestingly, it is also the left’s globalism contradiction, maintaining wealth for our workers while redistributing wealth to developing country industries and workers.
Join the fray. All of the America’s Crossroad Posts are listed by categories in the BLOG CONTENTS tab. If you decide to read a few, please leave comments about your “Patriot Visions,” start or join the conversation, and share the Posts with friends and political frienimies.