Going Global was supposed to be the way for companies to make money...
and it worked the "Companies" made money, but no one else seemed to.
It has been my direct experience that having a group of people (a
significant portion of the population) that were paid well drove the
economy. Once the companies went global, the largest cost for a
company moved to the lowest cost of employment. Sounds familiar
right? Now that these well paid people are out of work, there is less
to none in money flow in the LOCAL economy. So smaller companies who
are paying as little as they can to their employees in order to
compete... no longer have the business to support that little. So
they close. Sounds familiar, right? All that are left seems to be
the bigger chains and box stores; but they are paying as little as
possible for the best people they can find.
So let's look at it in perspective, every company is in business to
make money (I know a stupid statement, but let's be honest most people
lack common sense) and prosper. Let's break down every business: 1.
One third goes to labour 2. One third goes to facilities and
maintenance 3. One third goes to products that make the business
money. So profit comes from lessening any or all of the three
sections of costs. Debts incur when all three add up to more than
100% This is as simple as it gets when it comes to business
practices, obviously I have to point out that each business is
different, but sometimes a simple framework is all you need to see the
larger patterns. So what does this have to do with the Global Economy
Swirling Down the Drain? Simply put, the drive to ever higher profits
are pushing companies into areas of the world that will a) reduce the
cost of labour, b) lower the cost of facilities and maintenance, and
c) lower the cost of their products. Where all three of these
conditions meet, is where you will find all of the jobs.
My point is that the local economy suffers as the global economy
shifts. And with the global economy becoming more and more fluid to
get at the dwindling profits there is an increase in buyer
uncertainty, and less spending. Do you see it yet? This vicious
cycle of cause and effect: buyers have money when they have good jobs,
if that job can be moved at a moments notice, they spend less. If
they are buying less companies are making less, if they are making
less they move again to make more. It is not a chain by any means yet
it still locks the buyer and the "companies" together. Can you see
it? It is not necessary for the companies to move to make more money,
they need to invest in the local economies so that more people around
the world can BUY more from them. The cycle can stop, we just need to
work TOGETHER!!!
