That noise you hear? The sound of globalization going into reverse – June 28, 2018
The article I’m referring to can be located by going here: https://www.wsj.com/articles/as-trade-barriers-go-up-global-supply-chains-unravel-1530100987
Admittedly I’m writing this article out of frustration because a lot of these mainstream articles simply go unchallenged. There’s a portion of the above article that writes about the benefits of Globalization and the examples used are irritating to me because the writer is completely ignoring the financial creativity that’s being implemented in these industries primarily because of the regulatory bodies of the host countries. A portion of the article states the following:
The benefits to consumers have been substantial, even if they don’t realize it. Consider, for example, that most cars sold in protectionist Brazil must be assembled there. As a result, a basic car sells for roughly 50% more than a comparable model in globalized Mexico.
To answer this question, the reality of the auto sector is that there are hundreds of thousands, potentially millions of Mexicans and Americans that could build a car from scratch if they wanted too. It’s the regulations that make this hard to do in the first place, which ultimately leads to big corporations going overseas to build things that can actually be done locally, especially now, with the high prices of an automobile. Secondly what makes a car expensive in the first place are the leases and financing related to a car.
Building a car isn’t expensive, the government makes it expensive, it’s high priced labor that expects to get a paycheck and unfunded liabilities that make building a car expensive and at the top of all of this are the financial companies. You remove leases and other forms of financing and the price of a car comes way down. I’m not pro or anti-protectionist but all Brazil did was make sure the financial sector wasn’t the only industry benefiting from auto sales in Brazil.
Now the real problem with Brazil is the entitlements along with the financing changes associated with building a car in Brazil. The inflated prices are based on central bank model where governments can promise things they can’t afford. This has been the globalist doctrine, in the real world, wages shouldn’t even exist, it would actually be in an employee’s best interest to work for Tips and Commissions. If an employee took tips and commissions and actually worked with the small business or corporate entity all parties would benefit, now the downside to this model would revolve would of course be no guaranteed wages and also the Globalist governments wouldn’t have a leg to stand on, because, in a system where there are no wages, people would pay fewer taxes.
The global system of taxes revolves around “wage growth” wage earners and small businesses are taxed the most because they’re the majority. Politicians are able to manipulate these people because these people are often taxed before the money gets into their hands. Wage earners often get a tax refund, which gives them the illusion that they got something for nothing from the government when in actuality the only thing that happened was they paid too much money taxes for which their governments had to refund them.
Now, if wage earners instead worked off of commissions or even worked with their corporate entities, they’d be able to save more on taxes based on the current global tax codes. This is what’s not being understood by the average person regarding Globalization is that the closer these globalists get to it, the richer the globalist will get and the poorer the average person will get. As an example in Canada, the current Liberal Canadian finance minister on Tuesday, September 5, 2017, attempted to change the small business tax code. Now the excuse used for it revolved around fairness and making the rich pay their fair share, but the truth regarding taxes in a civilized country doesn’t revolve around fairness because fairness doesn’t exist(some people are born rich others are born poor, is society going to have an Agrarian reform everytime someone is born?), it revolves equality under the law, meaning that all businesses large or small, rich or poor should be privy to same tax laws.
When a law becomes subjective only the richest or largest companies can fight back. In real terms what this means is that if the Government of Canada feels as though an entity is in violation of a subjective law, this entity can cease to exist, sure it fight back but where does a new business get the money to pay for a lawyers time? In business what typically will happen in these scenarios is the poorer or newly established businesses will pay the added tax, thus losing more profits, while the richer companies will fight the tax, backlogging the court system and possibly buy politicians to create special loopholes for them. This is how things work in the real world and this is what globalism does, furthermore Globalization also dumbs down the population as fewer and fewer people are able to start businesses which equates to them not understanding why or how they’re being ripped off by their governments.
The barrier of entry to start a business because of globalism right now is extremely high. Let’s pick on something else in the article.
Assembling an iPhone entirely in the U.S. out of American-made components would add up to $100 to its cost, according to a 2016 article in MIT Technology Review. This assumes, of course, Apple successfully relocates its supply chain. When, under pressure from the Obama administration, it began assembling computers in Austin, Texas, it encountered numerous quality-control and workforce headaches.
Read the wording of the writer in this instance “it encountered numerous quality-control and workforce headaches.” ? Why is that you ask? It’s because of regulations and entitled workers that the government says it wants to take care of for life. Also, think about this for a moment the average iPhone now costs $1000, The Apple iPhone 8 Plus has a bill of materials cost of $288.08, Let’s add $100 for Chinese Labor(yes of course I’m inflating the price for labour and assembly) Now let’s tac another $200 for American labor(yes i’m inflating prices again purposely).
So if brought to America the iPhone now costs $588.08 to make, Currently, the iPhone 8 Plus sells for $799 a retail profit of $200, if purchased in cash. Now, of course, there are options to lease the iPhone, insure the iPhone and enhance the iPhone’s value with accessories and other things. Oh yeah, my bad the Globalist plan is to completely wipe out all competition so they can find the cheapest labor and sell and the highest price, and oh yea my bad again it’s a fiduciary duty for account managers to get the most money for their shareholders, so as a globalist it’s in the best interests of all parties involved to keep the business IQ’s of masses down. Oh yes, Now I remember my sincerest apologies to the globalist elites.
It’s time for humanity to wake up to what’s going on, there are costs for every political decision, policies being enacted by politicians and put into law could easily be enforced by an intelligent, aware public voter. We are living in an era where a brand can be put to shame for destroying the environment, for exploiting individuals for all manners of things. The problem is that the globalists want to be the problem and the solution, they don’t want people to think outside the box or narrative they’ve created, they’re appealing to the laziness within us all and using it to enact laws that benefit them and keep them in power.
Interesting times ahead.