Adonis Diaries

When 19th century economist David Ricardo thesis goes global: Shit hits the fan

Posted on: October 23, 2015

When 19th century economist David Ricardo thesis is globalized: Shit hits the fan

What this David Ricardo wrote?

Any good or service will be produced where the cost is the lowest

Made sense. Within a nation, many impoverished provinces would start receiving investment because of the lower living standard and cheaper ways to produce goods and services.

During the Cold War, the western democracies felt pressured to safeguard a minimum level of social protection to its citizens. Syndicates for workers were permitted to grow, wage were negotiated and democratic control on the economy was functioning.

Any reform that would prevent the political system Not to be high-jacked by socialists and communists were discussed and passed.

Voting for the communist and socialist parties was the nightmare to control and check.

After the fall of Berlin Wall, globalization of the economy and finance was made imperative and the common people faced the total indifference of the multinational conglomerates and backed by the capitalist states.

Marx used the term “Foreign powers” to describe how financial capital and industrial capital occupy a nation and trample whatever free will existed in the communities. These foreign powers were the enemy of the people by reducing people to trading value, and most often driving them to slavery status.

How globalization works?

1. The third wold nations compete among one another to reduce social protection in order to attract investment of the multinational conglomerate. Syndication is banned, prohibition of negotiation for wages and salaries, manifestation deemed illegal, corruption at all levels in the administration…

2. The transfer of production and service centers, including research laboratories, overseas pressure the developed States to reduce social protection for its working class in order to retain the industries at home. For examples, deregulations, easy firing of employees, fluid work force, diminished salary hikes, high unemployment, cutting on social benefits…

3. Workers all around the world compete with one another to secure any kinds of jobs at bare living subsistence

4. The autochthone workers start hating migrant workers and part-time workers: racism is blooming.

This invisible hand of blatant capitalism is destroying even further the dignity of people, of work, and spoiling nature, degrading vast areas of lands and devaluing the natural resources.

Since 1990, many alternative reforms within the capitalist ideology have started to deliver reforms within the notion of Conscious Capitalism that would change behaviour from short-term profit to shareholders into sharing with stakeholders (employees, consumers, community and governance)

https://adonis49.wordpress.com/2015/10/21/reformed-capitalism-ideology-desist-focusing-solely-on-short-term-shareholders-profit/

Note: 1% captured 50% of world wealth? https://adonis49.wordpress.com/2015/10/22/1-of-earth-population-control-50-of-global-wealth/

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