Globalization: "One cannot produce that with us anymore!"

On a New England tour our bus company passed the headquarters of the "clark" -Schuhfabrik. Until the 1980s the shoes were still made even here, but today there is only the headquarters settled.
Our otherwise competent tour guide commented on this walk with the usual prejudice: "Globalization shoes and textiles can unfortunately no longer be produced in high-wage countries.".

But this assessment at all true? Or will only permanently convinced us of pre-poled economists, politicians and journalists? So why the shoes you could 30 years ago finished the country of origin - and then suddenly stopped?
What happened? Were about the selling prices in the Western European shoe stores plummeted suddenly, was only asked for nor by cheap Asian goods, the Western European wages had exploded?

No, all this was not! Many manufacturers had only figured out how you could make the miserable lowest wages in the Far East as its own.
The pure cost for a pair of brand shoes, for example, could be halved smoothly through outsourcing - they fell by about 30 to 15 DM. In maintaining the usual retail selling prices is thus the Rohverdienstspanne increased for the producer of 20 to 35 DM (The delivery price. trade was still at about 50, - and the retail price at 100, - DM.)

This "brilliant" business model prevailed in many industries.
I know, for example, photo album manufacturers who closed their factories in Western Europe and advertised for the manufacture international. The albums were first produced in a former Eastern Bloc country, and because the quality standards were not met there later awarded to the jobs to the Far East. Me as a dealer was told that the old level of quality would not be accessible to the wage dumping countries, of course.

But the albums were by the relocation did not become cheaper. At best, was achieved price stability over several years. In effect, the albums would today perhaps 15% more expensive, they would still manufactured in Western Europe.

But weighs this measly savings to the many disadvantages?
Justify it, the loss of quality, the environmental impact of the long transport routes, the long delivery and planning times, the inflexible response to market changes?
Here are the stresses and annoyances of the dealers and customers who have to toil with a damaged goods, considered in any calculation. The main thing the manufacturer benefits, everything else seems secondary.


The "savings" are minimal - the consequences, however disastrous!

The relocation of production to low-wage countries rarely brings the consumer thus benefits. The ridiculous price Saving he must buy usually with reductions in quality, he must lodge a complaint often and expect branded products to get foisted rogue gray imports or counterfeits.

In contrast, the disadvantages resulting from globalization, enormous.
The entire labor market in Western industrialized nations has been turned upside down and shaken up. Despite constant stimulus programs, a stunning cheap flood of money and a sophisticated creative accounting, the number of unemployed has multiplied since the 1980th
No wonder, when most industries have been formally eradicated. Hardly any work is still considered safe - only the number of miserably paid jobs Bad has spread like an avalanche.

You have to be very naive if you will not see any connection regarding the ubiquitous Deindustriealisierung and job cuts.
Even modern industrial nations such as France fall more and more in Bedroillie. Because you just can not produce the conditions as in the Far East or Eastern Europe there. And even during the economic miracle in Germany, the situation is far more explosive than admitted by the nice speakers of the government.
In Germany, about 15 million jobs insurable missing. Even to sell this as a success, I think is macabre.

The for over 30 years of sustained decline of the West repeatedly playing down the hypocritical argument that in Western Europe now footwear, textiles, televisions, computers, cell phones, Haushaltsgräte were once so for cost reasons no longer produce, brainwashing is pure.
For it is not the low production costs are (paid for by the exploitation of workers in the Far East) passed on to consumers in general, yes.

Some luxury brands say meanwhile they would pay strict with their suppliers to comply with high wage, labor and environmental standards. On the other hand, is itself recognized repeatedly by experts that it is almost impossible to monitor and track the long production chain.

Who advertises "fair production" with the so often operates eyewash.
There should be a well-known manufacturer actually my honest, he could still return displacement production in the old countries of origin.
Because with decent wages to remote production sites far from home after all provide no location advantages. It result from the fact rather considerable disadvantages (• high transport costs, • legal uncertainty • lower quality consciousness, • long delivery times, • difficult quality control, • voice and communication difficulties, • arbitrary authority, • corruption, • technology theft, • counterfeit products, etc.).


Productivity increases - but falling wages!

The spread of globalization lobby in March from the advantages of the international division of labor is disproved in other ways. Because since 1980 decline in the Western world, inflation-adjusted wages and pensions. Particularly affected the average earners and low wage earners are.

Taking into account that productivity has since 1980 more than doubled by technological advances, it becomes clear how catastrophic the globalization and the free trade agreement ultimately affect. Without the devastating effects of tariff reductions of the labor wages and the purchasing power today would be about twice as high (today's standard of living could be achieved with half the working time).

Since the mid-19th century, the continuous technological progress in the Western world brought about every 25 years a doubling of wealth - and since the early 1980s, this rule of thumb suddenly no longer applies. Although just the computerization and digitization triggered breathtaking waves of innovation.
Politics and the media make no effort to investigate this strange phenomenon or explain. Citizens are instead brainwash like lulled with stupidly bold statements and propaganda phrases ("Globalization brings greater prosperity", " the EU will bring us more prosperous," " the euro will bring us more prosperous," "New trade agreements (TTIP) bring us more prosperity "etc., etc.).

With this stupid stick Wohlstandsgesülze the uninformed population is soaped and euthanized. From the creeping decline is deflected sent by constantly emphasized how good it but go all of us.

Here, the question is quite different!
After 35 years of downturn it will be appreciated at the time that globalization (tariff reduction) and the EU and the euro and the complex FTAs gigantic wealth killers are that transform our world into an uncontrollable casino capitalism.


We can make everything, even our shoes and clothes!

The supposedly no alternative "international division of labor" is an aberration, a dead end!
If the established parties emphasize unctuous always having to respond to the "challenges of globalization", there is a fear that they have never seriously dealt with the matter (or, what is worse, deliberately lie to mankind ).

Because globalization is not a natural phenomenon, it has been artificially induced by tariff reduction. One need to globalization (global wage and tax dumping) not set! Because every sovereign state can escape the global race to the bottom in a simple way: by reviving the customs borders (who is well known proven over thousands of years).

Even if the SPD now acknowledges that in the traditional industrialized countries for decades, the middle-class incomes are stagnating and the wages of low-paid workers have actually declined (with all due respect, doctors, pharmacists, lawyers, architects, etc. fared no better), then would but it maybe once at the time the benefits of tariff reductions (the free trade agreements, the EU) to put principle into question.

Or could you as yet passed another 35-year test phase, and only then, after a total of 70 years, take stock and to dare to the old question of principle?
What value have the candid confessions "to make policy for the people who work hard and play by the rules keep"? The reality looks but probably a little different. It is policy made for globalization lobby, large corporations, for speculators for party bosses.

Only these chosen ones to benefit from the borderless "liberalization" of binding trade agreements, the reduction of tariffs etc .. In my book "Das Kapital and globalization" I have given concrete examples of how easy it is to break the power of the corporations and the unhappy monopolization - could reverse and Filialisierungstrend.

But such measures are of the alleged mainstream parties envisaged is thought debated ?. No absolutely not. The suggestions and analyzes are hushed. Because you do not come out of the usual routine, from the branded thought patterns and donate joyful globalization lobby does not want to alienate.

A de-globalization is at the established parties on any agenda. Instead, it deals with other trade agreements and euro rescue packages - without stopping once without think ahead and not to sum up where the journey into the future is to go at all.
The ECB wants to buy even directly corporate bonds now. In order for the companies to be raised further (they get cheaper loans). And banks face even more in Bedroillie (which they are ever to make money if they make the ECB all the lucrative business dispute).

 "No political will comes to the laws of economics over ", recently said the mayor of Hamburg Olaf Scholz. He is right!
Include falling wages and pensions, precarious working conditions, mass unemployment, the casino capitalism, the courtyards dying, the zero interest rate policy and the cheap flood of money to the "laws of economics". It would be really good if our elected representatives would ask this question.


Why still clings to the theories of Adam Smith and David Ricardo?

Still our future economists is treated to the dogmas of the two founding fathers of capitalism. The theories of Adam Smith and David Ricardo are around 200 years old - and since then, the global economic conditions have changed dramatically.

The famous pioneer of economics argued at the time, although for a free world market from - but under very different conditions. They went from a full employment of domestically - but above all of world harmonized wages. These basic conditions are not given today.
The wage differences are exorbitant. And globalization works solely on the basis of inequality, injustice and exploitation.
With world-equalized wages and taxes, globalization would be stone dead - it just would be a perfectly ordinary, useful for all parties world trade.

The propagated by Smith and Ricardo's comparative advantage, which should result from the trade with foreign countries, related solely to the use of superior production techniques and favorable climatic conditions (especially for food). This unique announcement abused the EU and globalization lobby for their excessive and counterproductive free trade fantasies.


Addendum 17. 1. 2017:
Donald Trump announced that he would raise a 35prozentigen customs duty on imported cars.

So is not reduced but the purchasing power (standard of living)? Not at all! For we must not lose sight of the counter-statement. Is again more produced in their own country, will reduce the imported wage dumping. Falling unemployment, wages rise in line with productivity (as it should be, of course). Especially the covert (covered up) mass unemployment dissolves more and more and disappear the lousy Bad jobs.
Overall, this increase earned income much faster than prices - especially the lower and middle classes in the US may be after a 40-year period of decline then finally afford and needs no additional side jobs more to feed the family properly.

Biased politicians do not want to understand this relationship partout. They are intoxicated by export successes, flirting with the price advantages in cheap imports - but refuse to perceive the downside (ie the wage decline and the expensive mass unemployment in their own country).
Just today I find a little message in our local newspaper, according to which 26 industrialized countries from 2008 to 2013 year suffered an average pay cut of 2.4 percent (although the economy was artificially fueled by the adventurous cheap flood of money).

In addition, it is important to remember that no customs revenue "lost" are money. They can be used to finance the social security systems and thus the non-wage labor costs are significantly lower.


Excuse me!
There is no equality of opportunity - even when it comes to forming opinions. While the capital (corporations, speculators, lobbyists, media, governments) can afford the best translators, I have to settle for a simple language program for financial reasons. I hope, however, that the text is nevertheless reasonably understandable and that no major mistakes have occurred. Thank you for your understanding.

Manfred Julius Müller, 24939 Flensburg (Flensburg has approx. 90,000 inhabitants and lies on the German-Danish border)


Background and analysis:
The taming of capitalism! The capitalist Reformation! 42 theses for a fairer world!
In Germany wages have been falling since 1980. Why?
Germany: The brazen proclamation of skills shortage!
Globalization: the ignorance of the facts
Does Donald Trump initiate the end of globalization?
Is there indeed a general market saturation?
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 rule of law becomes a laughing stock

A list of the currently available translations into English can be found here.
Unpopular truths from Germany. The capitalist world by no means functions in the way that the human being is brainwashed. The hottest political taboo topics. The tough fight against false doctrines and prejudices.

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Profitiert Deutschland von der Zuwanderung?


© Manfred J. Müller, Flensburg, Mai 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!