QUOTE(Dingo)
1. Poverty can continue to increase while all the "good" indices are going up. Average a person making a $100 a year with one making $10,000 a year and the average is somewhere around $5000. Average 9 persons making $100 a year with one person making a $1,000,000 a year and the average is somewhere around $100,000. Take a bunch of babies who would have died at birth in the past and keep them around to starve to death at 12 or die of some disease or get massacred in war and you kick the life expectancy up enormously. I mentioned before the movement from subsidence farming basically outside the cash economy to a cash based approach to determining household GDP. You have to look at the human realities behind the statistics.
Talk about your biased sample. Unfortunately, your statistical analysis is severely lacking. Even if I entertained your ridiculous criticism of average income, I did mention median and not mean income didn't I? Almost like I expected this line of reasoning.
QUOTE(Dingo)
2. The main manifestation historically of globalization was colonialization. It would take a cold heart to call that an historical positive. Since the millions and millions of victims aren't here to testify in their native languages that mostly have been obliterated along with their cultures one is left with the sad voices of their surviving children who haven't been completely co-opted. One can cherry pick the advantages of globalization + free trade but I see how it has made this country energy dependent on foreign sources and forced 3rd world countries into cash crop economies that leave their citizens without the varied subsidence foods they use to farm. Japan was smart and subsidized their rice farmers and now are not subject to the whims of world grain shortages, in fact they have become the biggest source of donated rice for nations suffering from devastating natural calamities. National and regional self-sufficiency should be the priority not global free trade.
Who is talking about colonization? Just you. I am talking about the current wave of globalization (post WW2-present). It is simply amazing to me that all of the anti-globalization rhetoric conveniently leaves out the fact that more people have risen out of poverty in the last 50 or so years than in the history of the planet. That this can be attributed to anything other than economic liberalism and free trade astounds me. When you compare the economic well-being to economically liberal countries and economically authoritarian countries - it is not even close. Globalization and free trade does not create poverty - the most ridiculous myth ever put forth. People have always been poor. It is only since nations have opened up their markets that prosperity has been growing. I would never argue that globalization will affect every individual positively and equally. That would be ridiculous. However, on the aggregate the evidence unequivocally points to greater wealth for nations.
QUOTE(Dingo)
3. And no consumers do not always choose what is in their best self-interest, that should be obvious. Addictive drugs both legal and illegal is one example. I have watched in California while cigarette smoking went down drastically due to a whole host of government interventions, including higher taxes on cigarettes, expanding no smoking zones and anti-smoking education. On the macro level Jimmy Carter after the Gulf oil boycott tried to put through policies headed toward national energy self-sufficiency but he got beaten before he could implement it by hands off morning-in-America Ronald Reagan. So now we are in the soup.
This is a value judgment more than anything. Who are you to dictate to someone else what they should spend their money on? Are you the ultimate arbiter of self-interest? Didn't think so.
QUOTE(Dingo)
4. A further example of moving from government regulation to the free market is what happened to Calif.(Sorry to have to overuse examples from here but that's where I live) when energy was deregulated. The energy suppliers like Enron cut off supplies to the state to spike the prices. California had to go deeply into debt to keep the state from going into a blackout. We're still trying to get out from under the debt we accrued.
The Myth of Energy DeregulationQUOTE
Some blame deregulation for the rolling blackouts, soaring spot market prices, and utility bankruptcies that sprang from the energy crisis of 2000 and 2001. But this anger is misplaced. California has never experienced true deregulation. The "deregulation" implemented in 1996 left price controls in place and created "artificial" markets ripe for manipulation and disparities between supply and demand.
By setting price caps below market prices, California limited the profitability of the industry. When wholesale energy costs increased, the price caps prevented energy producers from passing them on to consumers. Wholesale prices rose dramatically for a number of reasons: natural gas prices rose, hot weather in the Southwest increased demand, a relative lack of water in the Northwest minimized the production of hydroelectric energy, and pollution-control permits, which allow industrial companies that produce less pollution than allowed by regulations to sell the difference as "credits" to higher-pollution-producing companies, rose ten-fold, from $4 to $40.
The price caps additionally discouraged potential producers from entering the market and increasing competition, and they discouraged existing producers from investing profits in adding capacity, of which Californians were (and continue to be) in dire need. As a result of the price caps and pressure from politicians and environmentalists, the building of plants and transmission lines slowed dramatically and energy producers were not able to keep up with demand, particularly in the Silicon Valley, where the booming computer and "dot-com" industries led to even sharper increases in electricity demand.
After the big three investor-owned utilities — Pacific Gas & Electric, Southern California Edison, and SEMPRA (San Diego Gas & Electric) — were forced to sell many of their fossil-fuel-burning generators to private firms, regulators prohibited them from entering into long-term contracts with these firms, forcing them to rely upon the much more volatile short-term and spot markets. In addition, California forced generators and utilities to trade power through the Power Exchange, a state-run pool.
While that requirement was designed to give every company the same wholesale price for power, it also guaranteed that they would be unable to negotiate lower-priced power on their own. The California rules essentially barred utilities from buying power on the futures market, meaning they were unable to lock in supplies and prices.[4]
This is as if Wal-Mart and Marshall Field's were forced to acquire their goods from a non-profit, state-run pool that would guarantee that they would acquire the goods for the same price. Wal-Mart never would have been able to develop its efficient and innovative purchasing and distribution system, meaning it could not generate savings to pass on to customers in the form of lower prices.
At the time of the increase in wholesale prices, PG&E and Edison were still in the deregulation "transition" period, and thus still subject to PUC rate regulations. As a result, PG&E went bankrupt and Edison teetered on the edge of insolvency. To add insult to injury, when the government stepped in to purchase electricity on behalf of the struggling IOUs to try to quell the crisis, not only did it do so at the height of the emergency, when energy prices were highest, it locked in these prices with long-term contracts costing billions of dollars.
QUOTE(Dingo)
5. Where is this broad equity you are talking about? When the rich are getting exponentially richer and the poor particularly in poor countries are going into a condition of crisis I don't know what equity you are talking about. Yes the number of millionaires is increasing. Maybe that's what you meant. In the case of Mexico globalization has meant the destruction of their small farming industry with the consequence that many of them are abandoning their farms to sneak into the US to find work.
As usual the anti-globalization rhetoric is just the same old protectionist and Marxist rhetoric of old. Globalization did not destroy the small farming industry. It allowed Mexican consumers to buy cheaper and higher quality products from other countries. With no more protections, the uncompetitive industries failed. The misplaced capital that goes to insolvent industries will then be transferred to industries where they can be more competitive.
QUOTE(Dingo)
6. This idea that 20th century growth expansion can simply continue indefinitely while the benefits trickle down to all is the fallacy of an economics removed from basic ecology. That expansion has been fueled by a consumer society eating up its capital base and degrading its surroundings and accelerating the extinction of other species. That kind of thing can't continue indefinitely anymore than a growing cancer can. If you take a pair of rats, male and female, and place them in a large grain storage bin and leave them to their laissez faire ways there is going to be one heck of an expansion curve. It will continue until the last grain is either eaten or gone rotten. The downstream effects of this expansion appear now about to come back to bite us. The overuse of our energy sources and AGW are just two of the effects that appear ready to change the equation.
Perhaps you should start a brand new thread on the relationship between economics and ecology so we can discuss this issue further.