Globalization and the end of capitalism

Based on 40 years of my studies and research on socio-economic development in a variety of companies, it is my deep conviction that capitalism has reached the point of its own destruction move the world toward a more equitable standard of living. Two factors are important in this incredible, irreversible and inevitable. These are the electronic information and communication system, in particular the Internet and the rapid development of free trade or globalization. These have created a great imbalance in the production and marketing of goods and services in the world market. While hourly wage of a skilled worker in the United States is about $ 20.00, the equivalent of the work itself is about $ 0.80 per hour in China and about $ 1.80 in India, two community mass with a population combine 2.4 billion, with advanced technology and millions of skilled workers and professionals. These countries are now able to overcome the process of production of goods, services and marketing for a fraction of their cost in the U.S. and Europe. They produce the same quality of products in some cases even better than those produced elsewhere. Considering only the cost of labor, enormous pressure has already forced the production companies operating in global markets. Jobs are rapidly being outsourced to countries in developing resource-rich qualified to China and India in particular. In addition to low labor cost, there are other substantial benefits inducive to the movement of production in these countries. For example, there is little or no cost health care, especially in countries with national health care, whereas this is a very significant cost of production in the United States, there is little government regulation or a 'production especially as regards the working environment, working hours and child labor, there is a minimum, or pension benefits for producers often poorly regulated.

Consequently, the advanced countries have to reduce labor costs, reduction in pay for hours, improve automation and fire workers in order to remain competitive in the free world market. We are already seeing these moves in the U.S. in some industries such as airlines, the production of computers and other electronics, agriculture, etc. now in developing countries in particular China and India are rapidly advancing in the global market. Shops are now $ 1.00 in the United States. In practice you can find most of your needs in these stores. Almost all products sold are produced in developing countries especially China. A clamp that is around 8.00 to 12.00, if made in the U.S. you pay a dollar, almost the same quality, but made in China. The same goes for a wristwatch-calculator or ladies and men feel the color. I recently purchased a reading glasses for $ 1.00. Not only is perfectly suited to my eyes, it was also beautiful and professionally designed and built. The price, of course, including the cost of materials and the production, export from China to the United States, the profit the broker and finally the profit retail store. Looking glasses I was wondering how in the world this could be possible even with $ 0.80 for each of the cost of skilled labor!

However, the effects of free trade and globalization, although it is hard for developed countries, is promising for the rest of the world. It will force the developed West and Japan, before cutting the cost of production and thus reduce the volume of domestic production as their method of transferring production to developing countries. The main costs of production are wages, health care and pension benefits. To remain competitive in the global market, the cost in all three areas must be constantly reduced and, ultimately, substantially. Progressive reduction of wages and other benefits will about 90 percent of American households in a precarious condition. The purchase of, so called, luxury items will be sharply reduced and a portion of the proceeds will be donated to the necessary elements such as health care and some savings for retirement. Purchase multiple items now practiced in almost every family, as two or more sets of cameras, clothing will be brought to a minimum. As a result the volume of domestic consumption will be substantially reduced by forcing producers to reduce production accordingly. Living standards will fall to a low level that leads to a fairer life. The workforce reduction will not solve the problem when a large number of workers would be out of work. The only way these countries can peacefully and democratically survive would be through a democratic process of employment with the principle of equal opportunity in the workplace, resulting in complete elimination of the layoff or dismissal of workers. (1) The result would be substantially reduced employment pay, but full. (2)

In developing countries, in part, on the basis of gradual advance social consciousness, there will be an increasing demand for better wages and benefits. Wages go up gradually, improve working environment, health benefits and retirement will be established. As a result, living standards will improve to a low level for most citizens.

The strong competition in the global market, especially between the United States, Europe and Japan, while it would be necessary to continuously cut the cost of production and marketing, but also requires continuous cut of the profit margin in order to be able to compete very narrow market. Ultimately, it will be a matter of survival for all manufacturing companies. Producers will be satisfied if they come out even without profit and no loss. Manufacturing companies will therefore tend to be and act as a non-profit organizations. Income from production would offset the wages, benefits and other costs. Although the profit motive will still persist, but the opportunities for profit will not be there. This will be the end of capitalism as we have known. The alarming fact is that for the capitalists, because the free market world trade, this process of change will be irreversible and not too long. I believe that will not go beyond four to six years (3).

References:

1. See the theory of equality of opportunity to Rezazadeh, Reza. The technological democracy: Philisophy a humanistic future society, New York: Vantage Press, 1990, pp.188-209; Technodemocratic Economic Theory: From socialism to capitalism and democracy, Platteville, WI: Eternalist Foundation, 1991, pp.221- 248. and transition to a just society: Secrets of democratic life, leisure and happiness, Xlibris, 2003, pp.203-208,

2. See the concept of shared opportunities of technological democracy, op. cit, pp.198-205,. Technodemocratic and Economic Theory, op. cit. p. 186 and transition to a just society, op. cit. P.205.

3.You will find detailed discussion of globalization and the demise of capitalism in my writings, especially in the books mentioned above .......