A (Hopefully) Short Essay on Globalization and the Debt Nations Incur as a Consequence While Toying with the Idea of Placing Limitations on Debt and a Shorter Title
I might just be a college undergraduate but I still realize the magnitude of the recent debt crisis and all the ramifications it places on future generations. I will not claim to be an expert at it but I do however claim to have a basic understanding on when, where and how this is unfolding. The issue of global debt wasn’t an issue until the industrial revolution at which point global trade was facilitated and the world started sharing commodities (at a cost) with each other. This globalization with the advent of new technology eventually was able to lend itself to not only globalizing goods, but services as well. The advent of global services is an interesting one, here in the United States we buy computers designed in California, manufactured in China, assembled in Mexico and supported from India. It opens the lines for profit on part of the company whose name the product carries by selecting regions of the world where certain types of labor are permissible or cheaper in contrast to others. The act of distributing jobs worldwide to create a cheap product is often demonized but all in all, it’s a good thing. This shifts economic power to those countries that are developing, where labor is often cheaper. This leads to strengthening those countries, creating better conditions for future generations; it also gives the citizens of the more stable country a cheap, effective product for their consumption. The United States has exploited these practices post-War World II in hopes of supporting the expanding population (now called the Baby Boomers) and creating a better standard of living for their lower class by driving down the cost of goods. The downside to this is the United States poured the bulk of its economic resources overseas, effectively bankrupting the national wealth created during the industrial boom of the 1940s. Once the United States ran its wealth down, it turned to what most people turn to