Globalization: the ignorance of the facts

"There are also some losers in globalization," concedes the capital lobby. What a mockery! What a tremendous understatement!

Despite the economic decline in high-wage countries, which has persisted since 1980, the privileged establishment uninhibited sells globalization as a success story.
How they do that? Quite simply: by manipulating the statistics beyond recognition. In other words: turning white into black.


1. The trick with unemployment statistics!
Germany has a potential of about 50 million workers. But there are only about 30 million liable to pay compulsory insurance jobs (hide under it many low-paid part-time and hourly jobs, temporary work, etc.). The lack of jobs is obvious.

In order not to scare the folk soul and to pretend employment success, one operates whitewasching. For example, long-term unemployed people over the age of 58 are not counted at all (they are just too many), as well as those who are ill, marginally employed, have no Hartz IV claim, etc. A detailed essay on it can be found here.

It would be interesting to know how many wage paid full-time jobs actually exist. But such misery numbers obviously remain secret.


2. The trick with the prosperity increase!
Because politicians think that people are stupid, they also tried to pretend them about income development. For example, by ignoring the inflation rate, using gross rather than net wages, including billionaires in the average wage, etc.

If one calculates fairly, almost all old industrial nations have recorded a hefty income decline since 1980. Not only sellers, slaughterers, truckers, electricians, etc. are affected by this, the decline is also affecting academics - doctors, pharmacists, teachers, lawyers, architects, engineers. You do not believe me and want to know more? You're welcome...
It should be remembered that productivity has doubled since 1980. The benefits of technological progress and work compaction have completely fizzles! Just unbelievable!


3. The trick with the small calculation of the inflation rate!
The inflation rate can also be manipulated or calculated nicely. Currently, the inflation rate in Germany is given as 0.5 percent - I see it rather at four percent.
What should be achieved by the low inflation rate is obvious: it thwarts the claim for stronger wage increases and simulates an increase in prosperity, which in fact does not exist. And it legitimizes the ECB to unabashedly continue the cheap money glut (zero interest rate policy).
Is it also more detailed?
For sure...


4. Pure national dumbing: "In 25 years there was a wealth increase of 27,000 euros!"
How stupid and naive opinion maker think we are? Do some economists no longer have a sense of shame? Yesterday, the german television viewers in a documentary was seriously palmed of globalization would have led from 1990 to 2014 to a wealth gain of 27,000 euros.

How crazy is that? Unfortunately was not revealed, how the good man comes up with these dream numbers. I suspect he derived it from GDP (Gross Domestic Product). And thereby not taking into account inflation and ignoring net wage and purchasing power development.

But even with an honest assessment of the inflation rate, gross domestic product is not suitable as an indicator of changes in living conditions. Because it incorporates a ragbag of economic power, whether meaningful or counterproductive.
For example, ordinary citizens have little of it when huge sums of money flow into advertising, goods tourism, the rehabilitation of EU states, the admission of economic refugees or the escalating bureaucracy. To make matters worse, the calculation formulas for the determination of GDP are sometimes changed ("adapted to the time"). Reliable comparisons are thus hardly possible.

Even the German trade surplus (in 2014 he was 310 billion euros), to which globalizers like to get intoxicated, means ultimately little - if the numbers are right. The question is: what happens to this surplus (it would have rocked over the decades to several trillions of euros)?
Does the average person have even the slightest advantage of it? Where did that money end up? In the end, was it used to participate in foreign corporations or to build huge plants abroad (to be able to outsource more and more expensive German production)?

The bottom line is not GDP or the trade surplus, but the real development of earned income, prosperity and living standards. Everything else is brainwashing.


5. Globalization led to cheap money glut!
Anyone who still today praises globalization as prosperity-promoting is, in my opinion, a dreamer, a lobbyist or else he has serious problems with perception. After all, it has long since been proven that the house of cards of uncontrollable globalization (turbo-capitalism) can only be saved from decay by a gigantic influx of cheap money. Only through the adventurous economic stimulus program "zero interest rate policy" is the collapse of the global economy stopped.

But how long can this be good, how do you get out of this number again? The cheap money glut is contrary to any morality, it undermines the principles of the market economy and deceives governments and humanity about the seriousness of the situation. I'm afraid that will end badly.


6. "Every country should produce what it does best!"
Is not it cute, as is still held to the centuries-old dogmas of Messrs. Smith and Ricardo? The dusty theorem of capitalism has long since been refuted by practice. Apart from a few exotic foods, today almost everything can be produced anywhere in the world, in the same quality.
It is no longer about the "better", it is only about the "cheaper"! The production of textiles, TV sets, cameras, cell phones, office machines, etc. has not shifted from Germany to distant foreign countries because people elsewhere can do it better than us, but because they make it cheaper.

That's not what Adam Smith and David Ricardo were all about (at that time, wage levels around the world were at a fairly low level). Smith and Ricardo, who today can no longer defend themselves, to exploit as a justification for the modern wage and tax dumping, seems to me more than pathetic.


7. "We have to redistribute more!"
After all, since it is acknowledged that there are also "some" losers in globalization, economists are increasingly calling for greater redistribution. That sounds good, but it is not.
Because redistributions are basically at the expense of normal and better earners. The really rich and wealthy you can not take. Because that would be scared off at too high a tax burden only from the countryside (which would be absolutely counterproductive). Many states have already worked their way up to "wealth taxes" and have failed miserably.

But even the normal and better earners can not milk indefinitely. The higher the tax burden, the lower the willingness to perform. Somewhere there is a pain threshold for every human being. If work is no longer worth it, you draw the consequences (go to Hartz IV or go abroad). Already today, many Hartz IV families are better off as dual earner households. Want the politicians further pervert this anti-social injustice system?

I rate the call for more redistribution as a staged diversionary maneuver: pseudo-solutions are offered in order to be able to hold on to the absurd free trade delusion (of globalization).

Excuse me!
There is no equal opportunity - also with regard to the formation of opinions. While the capital (corporations, speculators, lobbyists, media, governments) can afford the best translators, I have to settle for financial reasons with a simple language program. I hope that the text is nevertheless reasonably understandable and that no gross mistakes have occurred. Thank you for your understanding.

Manfred Julius Müller, D-24939 Flensburg (Flensburg has about 90,000 inhabitants and is located on the German-Danish border).


Background and analysis:
In Germany wages have been falling since 1980. Why?
Germany: The brazen proclamation of skills shortage!
Globalization: the ignorance of the facts
The political and economic consequences of an brexit An analytical consideration from German view.
"We have to explain Europe better!"
When will the Dexit? (the withdrawal of Germany from the EU)
The capitalist Powers Act
Globalization: "One cannot produce that with us anymore!"
The fairy tale of the international division of labor
The international division of labor is counterproductive!
The fear of British Farmers before the Brexit!
The impact of globalization on developing countries
Brainwashing: "We want an open Europe!"
How much democracy can withstand the EU?
Should the EU become a political union, new problems arise!
Is there indeed a general market saturation?


Ist die Globalisierung Basis unseres Wohlstandes?
Und leben wir auf Kosten der anderen?



© Manfred Julius Müller, Flensburg, 4. November 2016

Current books by Manfred Julius Müller (unfortunately currently only available in German):
THE CAPITAL and the world economic crises - only Euro 5.80
THE CAPITAL and the welfare state - only Euro 7.90
OUT OF THE EU or persevere until the sinking? - only Euro 5,90
The free trade delusion - only Euro 6.50
Humanity knows no boundaries. Stupidity, but not too! - only Euro 6.80
Only Fairtrade! The capitalist Reformation! 35 theses for a fairer world! - only 5,- Euro

Manfred Julius Müller has analyzed global economic processes for more than 30 years. He is the author of various books on the topics of globalization, capitalism and politics. Some texts by Manfred Julius Müller also found their way into textbooks or are used for teacher training.

The analyzes and texts by Manfred Julius Müller are non-partisan and independent!
They are not, as is often the case, sponsored by state institutions, global players, corporations, associations, political parties, trade unions, the EU or capital lobby!