Internal
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Outline on the
Intro to the WES
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THE WORLD ECONOMIC SYSTEM ( WES ) EXPERIENCES CONFLICT
AMONG THE CORE, SEMI PERIPHERY, & PERIPHERY NATIONS,
W/ THE CORE, ESP THE US, DOMINATING |
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Today, w/ essentially only a single world power standing, it has come
by default to the US to organize, maintain, enforce, & defend the world
economic system ( WES ) |
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The WES operates much like domestic class systems w/in nation in that
there is intl 'class conflict' among 'upper, middle, & lower class'
nations |
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The upper class nations are called the core |
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The core nations attempt to maintain their advantages by exploiting
other nations |
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The middle class nations are called the semi periphery |
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The semi peripheral nations are trying to both maintain their advantages
by exploiting other nations, as well as not be exploited by the core nations |
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The lower class nations are called the periphery |
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Peripheral nations are trying to gain any advantage & reduce or
eliminate the exploitation they are experiencing by the core & the
semi peripheral nations |
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THE WES, AKA GLOBALIZATION, TODAY IS A SYSTEM OF EXPLOITATION
OF THE PERIPHERY BY THE CORE RESULTING IN ANIMOSITY &
ATTACKS TOWARD THE US |
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While supporters of the WES, aka globalization, see this as the process
of economic development, critics see the WES as a system primarily based
in exploitation of the weak by the strong; a new form of colonialism if
you will |
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See Also: Globalization |
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There are negative effects of the WES even for the US, including the
human & financial costs of attempting to be the world's watchdog, the
costs of protecting oil supplies around the world, as well as the cost
of being the target of attacks by those angry about conditions around the
world |
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After the Sept attacks, a poll indicated that the majority of people
in peripheral nations blamed the US for many of the world's ills |
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A growing fear of the US is one the biggest threats to world peace |
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The phenomenon of hatred toward the US is a relatively new one, emerging
in the decades after WW 2 |
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The intl known book The Ugly American first brought widespread attn
to the hatred directed toward the US, but yet still many Americans do not
recognize that this sentiment exists, much less the causes of it |
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See Also: The Ugly American |
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For examples of intl opinion of the US see: |
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The BBC at http://www.bbc.co.uk |
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The Pew Research Center
at http://people-press.org |
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The International
Herald Tribune, June 3, 2003 |
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THE HISTL DEV OF THE WES DATES TO THE EARLY EMPIRES, W/ THE MOD
/ CAPITALIST WES BEGINNING IN THE MID AGES, & MATURING TODAY |
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The WES has a histl dev that goes back more than half a millennium
which is useful to understand in order to place current events in the system
in their proper perspective |
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See Also: The WES's Histl Dev |
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Understanding the WES & its histl dev helps one understand the
differing classes & life chances for people in the US, & how these
both are affected by this system of economic relationships |
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It is important to understand the econs of some key nations around
the world such as Japan, Germany, China, & others, as well as the relationships
among these nations |
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Topics on Immanuel Wallerstein's World
Systems Theory
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External
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- Project: World Systems
Theory |
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INTRO: WORLD SYSTEM THEORY HOLDS THAT GLOBAL CAPITALISM HAS
BEEN DEVELOPING W/IN & BTWN NATIONS SINCE THE MID AGES |
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World systems theory ( WST ) holds that the world is made up
of Interdependent systems of countries linked by political & economic
competition |
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Rich nations are the core of the world econ & low income nations
are at the periphery of the world econ |
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WST is similar to dependency theory in that both agree that the dependency
of the peripheral nations results from:
a. narrow, export oriented economies
b. lack of industrial capacity
c. foreign debt
d. rich nations' single minded pursuit of profit. |
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See Also: Dependency Theory |
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WST suggests that the prosperity or poverty of any country results
from the operation of the global econ system |
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The world economy:
a. benefits rich societies by generating profits
b. harms the rest of the world by causing poverty
c. makes poor nations dependent on rich ones |
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CHARACTERISTICS OF THE WORLD SYSTEM INCLUDE GLOBAL DIV OF LABOR,
THE NATION STATE, CONFLICT, INTERDEPENDENCE |
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Throughout history, each World System has had FOUR Qualities:
a. A world system is a broad economic entity w/ a world
level division of labor
b. A world system is a self contained social system w/
set boundaries & a definite life span
c. A world system has systems held together by forces
in tension, not consensus
d. A world system is characterized by interdependence |
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Today the modern world system is characterized by the relatively strong
econ links btwn states, i.e. interdependence |
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The constituent geopolitical units depend fundamentally on features
of the system as a whole which reflect transnational linkages |
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THE WORLD SYSTEM IS ROUGHLY DIVIDED INTO THE:
- CORE (1st WORLD / DEVELOPED WORLD)
- SEMI PERIPHERY (2nd WORLD / DEVELOPING WORLD)
- PERIPHERY (3rd WORLD / UNDEVELOPED WORLD) |
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The most important current determinant of a state's classification
w/in the world system is its ability to ensure intl econ competitiveness
of its domestic companies |
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The world is best understood by dividing the world into THREE major
sectors including the core, the semi periphery, & the periphery |
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1. The core includes the major industrialized countries |
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The core is also known as the first world or the developed world |
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Core regions usually have a higher per capita income than do periphery
regions |
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The core is dominate trade, technology, highest productivity |
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Domination of trade, tech, & productivity allows the core to dominate
the world politically & militarily |
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The core's econ is based on services & mfr |
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The core exploits other regions via colonialism, imperialism, or hegemony |
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2. The semi periphery is also known as the second
world or developing countries |
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The semi periphery's economy is based primarily on mfr |
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The semi periphery can exploit the periphery, but is often exploited
by core |
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Brazil is currently a semi periphery state |
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3. The periphery is also known at the third world,
or the undeveloped countries |
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The periphery is exploited by other regions |
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The periphery's econ is primarily based on natural resource extraction,
exploitation of subsistence level labor in mfr |
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Historically, the location of the sectors of world systems have changed
as states compete for dominance |
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Thus, there have been different types of core states that have
dominated in different
stages of world development |
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The labels of core, semi periphery, & periphery are not merely
descriptive; they indicate an intl div of labor in which the core is linked
to the semi periphery, & periphery in dynamic & exploitative ways |
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THE TYPES OF WORLD SYSTEMS INCLUDE EMPIRES, CAPITALISM, GLOBALISM,
& SOCIALISM, ALL ON A WORLD SCALE |
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There are FOUR types of world systems |
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a. An empire world system is based on political
& / or military domination |
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b. The modern capitalist world system is based
on econ domination |
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Compared to the empire world system, the modern capitalist world system
is more stable, has a broader base, encompasses many independent states,
& has a built in process of economic stability |
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Modern capitalism began development in late 1400s |
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c. The global capitalist world system is based
on the globalization of econ domination |
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Some facets of global capitalism developed w/ capitalism in the 1400s
but has come to dominate world events since the early 1900s |
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d. The socialist world govt world system is a future
possibility |
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SOCIO HISTORICAL PROCESSES OF THE WORLD SYSTEM |
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There are FIVE historical processes that span types &
stages
of world systems |
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1. GEOGRAPHIC EXPANSION GENERALLY INCLUDES THE
EXPANSION OF EMPIRE, COLONIES, OR MKTS |
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The histl process of geographic expansion is a prerequisite for the
many stages |
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The histl process of geographic expansion is caused by people advancing
their own interests |
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During geographic expansion, the world must have enough trade to advance
the social systems |
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Geographic expansion is a sign in all of the stages mentioned above,
though in the later stage domination shifts forms |
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2. THE DIVISION OF LABOR HAS STEADILY INCREASED THROUGHOUT
HIST |
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While the typical definition of the division of labor referred to the
subdivision of tasks, Wallerstein sees the division of labor developing
into types of labor |
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Wallerstein sees the division labor developing from the individual
in Hunter Gatherer Society, to a national division of labor, to a world
wide or global division of labor |
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The sociologist Emile Durkheim recognized the division labor as the
major foundation of modern society |
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See Also: Durkheim |
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See Also: The Division of Labor |
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See Also: The Intl Division of Labor |
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An example of the development of the division of labor from the individual
to the national level, to the world wide or global level is that as the
nation state developed, various nations took different places in a globalized
division of labor |
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Even as far back as the 16th Century, |
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a. capitalism replaced statism as the major mode of domination |
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b. the solidarity of capitalism was based on unequal development |
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c. some nations could exploit & some would be exploited |
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d. the intl division of labor relegated different nations
to different roles |
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e. the roles included creating labor power, food production,
raw material production, & industry |
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In the past, different areas produced different types of labor, including
the:
- African supply of slaves
- Southern Europe supply of tenant farmers
- Western Europe supply of wage workers |
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The new intl division of labor is caused by the decentralization of
mfring from the core countries to semi peripheral & peripheral nations |
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Today, different areas around the globe produce different types of
labor |
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PRE INDL LABOR TYPES INCLUDED FREE LABOR, FORCED LABOR, & SHARECROPPING |
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Until the Industrial Age, there were THREE types of labor including
free labor, forced labor, & sharecropping |
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a. The core had free labor as its primary form
of labor |
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b. The semi periphery had sharecropping as its
primary form of labor |
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c. The periphery had forced labor as its primary
form of labor |
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Capitalism's strength lies in the core w/ free labor & the periphery
w/ unfree labor |
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Since the Pre Industrial Age, the amount of forced labor in use has
diminished |
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3. URBANIZATION IS A DEVELOPMENT OF THE MODERN INDL
WORLD |
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Urbanization is characterized by a continual movement to urban
areas |
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The histl trend toward urbanization has reversed itself only during
extraordinary circumstances such as war, plagues, famines, etc. |
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4. DOMINATION BY THE CORE HAS ALWAYS
EXISTED |
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Colonialism is domination of regions of the core,
the semi periphery, & the periphery through political/military power |
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Imperialism via neocolonialism is the domination of regions
of the core, the semi periphery, & the periphery through economic power |
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Hegemony is domination of regions of the core, the semi periphery,
& the periphery through a combination of economic, military, financial,
& especially cultural means |
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5. THE CYCLE OF LEADERSHIP CONSISTS OF THE INTERACTION
BTWN ECON, MILITARY, & POLITICAL POWER |
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The cycle of leadership has many stages, including:
| Competitive struggle --> |
economic power --> |
political power --> |
| military power --> |
expansion/hegemony --> |
imperial overreach --> |
| decline/defeat --> |
begin again w/ competitive
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struggle --> |
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Britain maintained world domination in two successive cycles of leadership |
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The US is now considered to be the world's hegemonic power |
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The fact that the US is not militarily conquering the world brings
the cycle of leadership into question |
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Japan became a member of the world system core in the mid 20th century |
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A SOCIO HISTL ANALYSIS REFLECTS PERIODS OF STABILITY & CHANGE |
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Before the Modern Era, there was the sense that history was cyclical |
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At times in history, one nation may dominate by econ, political, &
military power |
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There are also periods of flux |
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This cycle first developed during Early Empire Era era & to a great
extent still exists today |
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WST holds that the world system is held together by forces in tension,
not consensus |
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WST sees the world in historical & developmental terms |
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Historically the world developed through these stages such as:
| Hunter Gatherer Society |
1.5 mm BP - 10 K BC |
| Pre Empire Era: Ancient Agricultural Society |
10 K BC - 3K BC |
| Early Empire Era |
3 K BC - 200 BC |
| Roman Empire Era |
200 BC - 500 AD |
| Pre Industrial Society (Middle Ages) |
500 - 1300 |
| Early Industrial Age |
1300 - 1700 |
| Industrial Age |
1700 - present |
| Global Capitalism |
1910 - present |
| Post Industrial Society |
1970 - present |
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Starting w/ ancient agricultural societies, hearth areas developed
which were early core areas |
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By the time of the Early Empire Era era, there is full
development of the core, semi periphery & periphery |
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Periods of stability include various centuries in the Egyptian Empire,
Chinese Empire, the Roman Empire, & Feudal Europe |
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While much of history is characterized by change, some of the most
studied eras of change include the collapse of the Roman Empire & the
transition from feudalism to capitalism |
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The modern world system began in the late 15th century |
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Internal
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Internal
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- Project: Globalization
& the Standardization of Culture |
Link
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GLOBALIZATION IS THE INTERCONNECTEDNESS OF DIFFERENT PARTS
OF THE WORLD THROUGH ECONOMIC, ENVIRONMENTAL, POLITICAL, CULTURAL, ETC.
CONVERGENCE ( CHANGE ) |
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Globalization is a trend whereby production, competition, & economic
exchange increasingly occur on a worldwide scale |
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Given the impact of globalization, there is almost no remote place
on Earth |
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The effects of globalization include the growth of multinational corps.,
an increase in international trade, the creation & mystification of
global content, the internationalization of capital markets, the creation
of nascent world govt. & global regulatory agencies, the homogenization
of culture, creating a global western culture, and the polarization of
culture, creating a clash of cultures aka, cultural wars |
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See Also: The Effects of Globalization |
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Globalization has been going on since international trade began |
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Wallerstein's world systems theory views world capitalism as
beginning in the middle ages as the Europeans began their "Age of Exploration"
& such nations as Italy, Spain & Portugal became world powers based
on international trade & colonization |
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The trend of international trade & globalization is in a period
of unprecedented acceleration |
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Researchers Chase Dunn, Kawano, & Brewer (2000) found that world
trade, in relation to domestic production, grew rapidly over a 160
yr. period during the 1800s & 1900s |
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Researchers Chase Dunn, Kawano, & Brewer found that the long term
trend of globalization, there are three distinct surges of globalization: |
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- about 1845 to 1880 |
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- about 1900 to 1925 |
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- about 1970 to present |
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Economics & culture are perhaps the strongest globalizing forces
How? |
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The global economy is specializing through locational flexibility |
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The global economy is specializing in that some countries or
regions through:
- extracting raw materials
- processing raw materials
- mfring the raw materials into parts
- assembling parts
- consuming finished good |
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- Examples of globalized production include the Plastic Hoover vacuum
& the Ford "World Car" |
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There are over 800 mm people who are tied directly to global
mkt in US, Europe, & Japan |
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The core nations have totally globalized economies & many other
peripheral & semi peripheral countries are partially globalized |
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Global culture(s) are rising & falling
Strong cultures are infectious
Which culture is the most well known word in the world? |
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Global forces are so powerful, they are affecting the global env |
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THERE ARE FIVE FEATURES OF THE GLOBAL ECONOMIC & CULTURAL SYSTEMS
INCLUDING: COMPLEMENTARITY, INTL DIV OF LABOR, ECON
OF SCALE, TRANSFERABILITY, DIFFUSION |
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The features of global econ & cultural systems include |
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1. complementarity, which occurs when demand in one place
is complemented by supply in another |
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2. the international division of labor, which is
the specialization of labor by country |
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3. economies of scale, which are efficiencies created
by world scale operations |
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4. transferability, which is the ability to move capital,
skills, technology, or products creates deindustrialization in the core
& economic development in the periphery |
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5. spatial diffusion, which is expansion, relocation,
hierarchical: the way things spread through space over time |
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FACTORS AFFECTING GLOBALIZATION INCLUDE TECH SYS, CONSUMER
MKTS, DIV OF LABOR, & FINANCE |
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There are FOUR factors affecting globalization & local economic
development, including the international |
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1. technical systems, which today are almost all international
in scope |
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2. consumer markets, which today are characterized by
global patterns of consumption as seen in people around the world who enjoy
McDonalds, Coke, etc. |
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As late as the 70s only a few peripheral nations were open to intl
trade & only 33 % of the wkrs in centrally planned econs: SU,
China, etc. |
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As late as the 70s in the core countries only 33 % of the wkrs were
not in the world sys because of trade barriers, etc. |
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In the 00s, only 10% of the entire world's wkrs are outside of the
global econ |
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3. division of labor, which today results in complex &
simple products being constructed w/ parts from several nations, assembled
in another nation, & sold in another |
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4. finance, which operates 24 hrs a day following the
business day in Am, Japan, Asia, & Europe |
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Americanization is a powerful quality of globalization |
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GLOBALIZATION THEORIES INCLUDE SUSTAINABLE DEV TH, MODERNIZATION
TH, DEPENDENCY TH, & WORLD SYS TH |
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Sustainable development theory examines how nations can encourage
economic growth in a way that will benefit those nations & their people
and not just multinational corporation in a manner that can be sustained
over the long run w/o further damage of the environment |
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Sustainable development theory asks who really benefits when
international corps build plants or extract natural resources in developing
countries |
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Modernization theory examines how both the corporations &
those who live in developing countries benefit because of the jobs &
new markets that are created by the investment of multinational corps. |
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Dependency theory argues that corporations take wealth out of
the developing countries & gain control of resources that could otherwise
have been developed & benefited from by the people living in the countries |
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World systems theory holds that all of history may be understood
as a conflict btwn three sets of nations, the core, the semi periphery,
& the periphery, all of whom may form strategic alliances to further
their own interests |
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Internal
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Outline on Global
Stratification
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External
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- Supplement: Info on Global
Strat. http://www.sdsmt.edu/online-courses/is/soc100/Glob_Strat.htm |
Link
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Since the world is so globalized now, to understand the full dimension
of poverty & strat, one must also explore global strat |
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Global strat examines the patterns of social inequality in the world
as a whole |
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From the global perspective, the distribution of wealth is extremely
uneven as compared to inequality in the core nations |
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TERMINOLOGY |
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Different types of terminology have been used by scholars to divide
the nations of the world into several broad categories based on their level
of econ development |
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The three worlds model was the original model used to categorize nations
on their level of econ development |
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In the three worlds model the 3 categories of global econ dev include:
a. the first world, which includes primarily rich industrial
nations
b. the second world, which includes primarily less industrialized
socialist nations
c. the third world, which includes primarily non industrialized
poor nations |
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The traditional typology of the first, second, & third world is
no longer as valid as it once was though most social scientists still use
a 3 tier scale |
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The three reasons the three worlds model does not work today are that:
a. it grew out of cold war politics
b. changes in Eastern Europe & the Soviet Union collapse
means the category of the second world is less distinctive than it once
was
c. the model inaccurately lumped together more than 100
nations as third world |
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A revised system of classification involves the categories of high
income countries, middle income countries, & low income countries |
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In terms of development, a global classification of core, semi peripheral,
& peripheral nations is often used denoting those nations at the core
of the global econ, those nations which are partially linked to the global
econ, & those nations w/ the least interaction w/ the global econ |
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Link
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The Pie Chart of % of Global Income
shows that the richest quintile of the world earns 80 % of all income while
the poorest quintile earns only 1 %, demonstrating that worldwide the poor
are poorer, the middle class is smaller, & the rich are the richest,
as compared to the income strat of most core nations |
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Link
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The Table on Economic Development
shows that world economic development, in terms of income, is split roughly
btwn core, semi peripheral, & peripheral nations, or roughly, btwn
north & south |
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Global social, & political & econ stratification (inequality)
is far greater around the world than in the US |
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HIGH INCOME NATIONS ARE AKA AS CORE NATIONS, 1ST WORLD NATIONS,
DEVELOPED, ETC. |
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The high income nations are the relatively rich, industrialized nations |
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High income nations include most of Western Europe, Canada, the US,
Japan, Australia, & New Zealand |
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In high income countries, a highly productive econ provides people,
on average, w/ material plenty |
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25% of Earth's land area & lie mostly in the No Hemisphere &
in general all the core nations are in the north |
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Significant cultural differences exist btwn core & other nations
in that in general there is more democracy & civil rights in core nations |
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All core nations produce enough economic goods to enable people to
lead comfortable lives, though the US has the highest poverty rate, w/
about 1/3 in poverty |
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People in core nations enjoy 79% of the world's total income |
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Production in the core nations is "capital intensive" in that all businesses
use a large proportion of technology, machinery & other labor saving
devices |
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The econs of the core nations are based on factories, big machinery,
& advanced technology |
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MIDDLE INCOME NATIONS ARE AKA AS SEMI PERIPHERAL NATIONS, 2ND WORLD
NATIONS, DEVELOPING, ETC. |
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The middle income countries are characterized by per capita incomes
btwn $2,500 & $10,000 per yr |
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Middle income nations have experienced some industrialization, but
agriculture remains important in their economies |
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Middle income nations, including most of Latin America & Asia,
are less economically productive, w/ a standard of living about average
for the world as a whole but far below that of the US |
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Semi peripheral nations also have a significant share of poor people
who are barely able to feed & house themselves |
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While not as developed as the core nations, industrial jobs are common
in the semi peripheral nations |
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In semi peripheral nations 1/3 rd of people live in rural areas |
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In semi peripheral nations, the poor, lack access to schools, medical
care, adequate housing, & safe drinking water to a greater extent than
in the core nations |
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The former Soviet Union & Eastern Europe were socialist economies
which still make up the majority of the second world tier |
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The second tier of econ dev makes up 55% of world's land area &
home to 70% of humanity |
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Societies are densely populated compared to high income countries |
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Being second tier, does not mean that the econs of semi peripheral
are all small |
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China, w/ nearly 1/4 of the world's population, 1.3 bb, has the largest
corps of any nations, w/ 6 of the top 10 corps |
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The cultural class btwn modernization & traditionalism is the greatest
in semi peripheral nations |
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The nascent middle class is exposed to the democracy & civil rights
of people in the core nations, but traditions often force people to live
w/ less freedom |
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Pollution & destructive economic practices are the norm in semi
peripheral nations, both which take a high toll in human & other forms
of life |
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LOW INCOME ARE AKA AS PERIPHERAL NATIONS, 3RD WORLD NATIONS, THE
LEAST DEVELOPED, ETC. |
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People in US w/ income below the poverty line live far better than
the majority of the people on the planet |
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The low income countries are primarily agrarian societies w/ little
industry |
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Most of the people are very poor in peripheral nations |
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These countries are found in Central & E Africa & in Asia |
|
|
|
In the low income countries of the world, poverty is severe & widespread |
|
|
|
Although small numbers of elites live very well in the poorest nations,
most people struggle to survive on a small fraction of the income common
in the US |
|
| |
Peripheral nation are agrarian & face severe poverty |
|
| |
Most people in peripheral nations follow cultural traditions though
like in the semi peripheral nations, more people are becoming aware, &
fighting for the democracy & freedoms of the core nations |
|
| |
In 2007, the people of both Pakistan & Myanmar made global news
when they fought repressive, traditional regimes for democracy & civil
rights |
|
| |
Peripheral nations have limited industrial technology |
|
| |
In peripheral nations, people's lives are shaped by hunger, disease,
& unsafe housing |
|
|
|
People in rich nations have difficulty grasping the extent of human
poverty & famine |
|
|
|
Pollution & destructive economic practices are the norm in peripheral
nations, both which take a high toll in human & other forms of life |
|
|
Pie
Chart of % of Global Income
Calculated by the Macionis based on UN Development
Program
The Pie Chart of % of Global Income shows that the richest quintile
of the world earns 80 % of all income while the poorest quintile earns
only 1 %, demonstrating that worldwide the poor are poorer, the middle
class is smaller, & the rich are the richest, as compared to the income
strat of most core nations
|
|
The Table
on Economic Development
Based on data from UN Development Program
(2005)
The Table on Economic Development shows that world economic development,
in terms of income, is split roughly btwn core, semi peripheral, &
peripheral nations, or roughly, btwn north & south
|
|
Internal
Links
Top
|
Outline on the WES
in the Early Indl Age
1300 - 1700
|
|
External
Links
|
|
|
EARLY PERIODS OF COLONIZATION BY THE EUROS & THE ASIANS
MARK THE BEGINNING OF THE MODERN WES |
|
| |
When conditions ripened for a WES about 1450, Spain & Portugal
took the lead |
|
| |
Spain & Portugal were the first to estb extensive overseas colonies
& explore the world for new territories |
|
| |
Spain & Portugal soon lost their early lead w/ England, the Netherlands
& Fr becoming dominant |
|
| |
The UK, the Netherlands, & Fr took the lead because they learned
from Spain & Portugal that it becomes too expensive to dominate many
nations, politically & militarily around the world |
|
| |
Spain & Portugal had overextended w/ empire building & lost
their early positions of power in the WES |
|
| |
Some core nations do attempt to gain a hi level of control over colonies,
both in this age as well as today but the hist trends in the WES since
the 1600s has shown that there is a variety of levels of the amt of control
over periphery nations & colonies |
|
| |
When the WES is expanding & the core has good econ times, there
is less colonization, meaning that the core is not trying to achieve as
much control over 'their' periphery nations |
|
| |
During poor econ times, the core tends to attempt more colonial control
to keep the other core nations from having econ relations w/ their periphery
nation |
|
| |
JAPAN'S EMPIRE RIVALED THAT OF THE UK IN THE
EARLY & MID 1800s |
|
|
|
While the most recent challenges to Western hegemony are those from
the former communist block, esp the the SU, & today that challenge
is from terrorism, before this there was the new econ threat from Japan |
|
|
|
Japan was the first & as yet only advanced ind nation from the
Asian traditions & culture |
|
|
|
Asia accted for more of the world's econ until the 1820s |
|
|
|
In the second half of the 1900s, the WES has been dominated by the
US, which began as an extension of the Euro centered core that began in
the 1500s |
|
|
|
IN THE MODERN WES, ELITES BECAME MORE INTERESTED IN ECON
PROFITS THAN POLITICAL / RELIGIOUS DOMINATION |
|
|
|
Core elites in the modern world sys are econ elites concerned w/ econ
profits |
|
|
|
A subjected nation in the modern world sys is not usually controlled
in every detail by core elites, occupied by a foreign army, or forced to
pay taxes to the dominant nation |
|
|
|
The main goal is to extract profits for the dominant core elites |
|
|
|
IN THE EARLY MODERN WES, THE PATTERN OF ECON DOMINANCE, FOLLOWED
BY MILITARISM & DECLINE DEVELOPS |
|
|
|
By becoming a dominant core nation, i.e. superpower, the Netherlands
set in motion a process that eventually led to its relative econ decline |
|
|
|
While the Netherlands estbed innovative production & banking methods,
other nations were able to copy the Dutch |
|
|
|
W/ even newer & more productive econ & banking sys, the UK
& Fr began to challenge Dutch econ dominance |
|
|
|
Productivity in the Netherlands declined w/ the rise in its standard
of living, a result of its dominant core status |
|
|
|
The Dutch's relatively high standard of living pushed up production
costs, making their products less competitive |
|
|
|
W/ loss of productivity dominance, the Dutch trade dominance was soon
lost, & w/ trade dominance gone, financial dominance was eroded |
|
|
|
Although the Netherlands continued to hold fin pwr, its bankers, seeking
profitable investments, went outside the nation to a greater degree |
|
|
|
The Dutch investors sought opportunities outside the Netherlands In
other core & periphery nations & the flow of capital moved, esp
to the UK |
|
|
|
The outflow of investment further harmed the Dutch econ even though
it helped the profits of Dutch bankers |
|
|
|
WHEN THE DUTCH LOST THE LEAD AMONG THE CORE, THE UK CAME TO DOMINATE |
|
|
|
W/ the decline by he end of the 1600s, conflict among the core nations
increased |
|
| |
There had always been wars among core nations, but now the power of
the Dutch to enforce world order was reduced |
|
| |
W/ the Dutch decline, other nations were fighting for advantage to
take the lead, esp the UK & Fr |
|
| |
By the early 1700s, the Dutch had allied w/ the UK & the Dutch
fin investments helped the Engl advance in productivity & trade |
|
| |
The Dutch military supported helped the Engl defeat the Fr |
|
| |
THE FRENCH ARISTOCRACY KEPT FEUDALISM IN PLACE & PREVENTED
MODERNIZATION UNTIL THE FR REV OF 1789 |
|
| |
The Fr were hampered by an outdated political structure &
rigid strat sys still dominated by a feudalistic, old agrarian aristocracy |
|
| |
The Dutch had been call the 'first bourgeois revolution' in the 1560s,
which gave them more independence from the Hapsburgs empire, giving them
a ne political sys that favored the new capitalist class |
|
| |
In the UK, the capitalist class achieved dominance over the old feudal,
landed aristocracy by the 1700s, though this happened slowly through a
series of conflicts over several centuries |
|
| |
The Fr Rev of 1789 came too late for the Fr to dominant the new ear
of the mod world & capitalist competition |
|
Internal
Links
Top
|
Outline on the
WES in the Industrial Age
1700 - present
|
|
External
Links
|
|
|
THE BRITISH EMPIRE ESTABLISHES A STABLE WES IN THE 1800s
WHICH DECLINES IN THE EARLY 1900s |
|
| |
During the 1800s, British dominance again estbed relative stability
in the world system, both economically & militarily |
|
| |
It was a time of Brit expansion, w/ colonies in Asia, Africa, &
the New World |
|
| |
But following the earlier patters of the Dutch, the Brits also slid
into a relative econ decline |
|
| |
The overextended colonial sys placed a strain on the Brit military,
the cost of which contributed to their econ decline |
|
| |
Like the Dutch, the Brits held clear dominance in the WES for a relatively
short time, from about 1815 to the 1870s |
|
| |
THE BRIT EMPIRE ALLIES W/ FR, WHILE THE AXIS ALLIANCE
OF GERMANY, JAPAN, & ITALY CHALLENGES THEM |
|
| |
As in the 1700s, when the Brits lost their dominance, there was core
conflict |
|
| |
The Brits & Fr were allies against the Axis of Germany, Japan,
& Italy |
|
| |
It was Ger & Italian unification in the late 1800s that helped
the rise of these nations |
|
| |
The Meji Restoration beginning in 1864 brought industrialization to
Japan |
|
| |
WW 1 & 2 WERE CAUSED BY CORE CONFLICT OVER WHO CONTROLLED
THE PERIPHERY |
|
| |
By 1900 the fact that most of the periphery areas of the world had
been claimed by core nations created a major difference in the mod WES,
which ultimately contributed significantly to the causes of both WW 1 &
2 |
|
| |
In 1800, the old Euro core claimed 35 % of the world, & by 1914
they claimed 85 % |
|
| |
The Ger, Italians, & Japanese wanted colonies & they tried
to take them from the Brits & Fr, setting the stage for WW 1 &
2 |
|
| |
While Ger, It, & Jap were moving to core status, so was the US,
esp after the defeat of the feudal, slave Southern econ sys & the ascendancy
of the indl North |
|
| |
Brit bankers directed more investment to the US because their econ
was in relative decline |
|
| |
Like the Dutch & the Brits, when the US was rising to core dominance,
it had a very small military budget when compared to those of other indl
nations |
|
| |
THE ALLIANCE W/ THE US ALLOWED BRIT & FR TO DOMINATE
BECAUSE OF THE US'S ECON POWER |
|
| |
US entry into WWs 1 & 2 allowed the Allies to prevail over the
Axis, demonstrating the econ power of the US; e.g. the capacity to produce
a new aircraft every 5 min & a ship every day |
|
| |
The US became the dominant core nation after WW 2 both because of the
total destruction the war wrecked on the other core nations & because
of the favorable econ climate in the US |
|
| |
After WW 2, the US produced over 50 % of the world's indl output, supplied
33 % of the worlds exports, owned 67 % of the world's supply of gold, &
was the clear military leader |
|
Internal
Links
Top
|
|
Outline on the WES in the Era of Global
Capitalism
|
|
External
Links
|
| |
IN THE WES TODAY THERE IS NO SIGNIFICANT ALTERNATIVE TO GLOBAL
CAPITALISM OTHER THAN THE 3 VARIANTS OF REAGANOMICS, THE NEW
DEAL, & THE ASIAN MODEL |
|
| |
When the US was opposed by the communist block, it was a simpler matter
for the elites to enlist the support of the people both in opposition to
the communists, as well as for their particular type of capitalist, global
econ system |
|
| |
Today there is no clear cut opposing force & the competition among
the 3 largest econ blocks, i.e. the US, Japan, & Euro, is intense |
|
| |
It is more difficult for the elites in the US to justify their particular
type of capitalist, global econ system when Americans are able to see the
successes in Jap & Ger |
|
| |
It is estimated that 700 mm people in the core nations are directly
linked into the WES of global cap, w/ 4 bb people directly or indirectly
linked into the WES of global cap in the semi periphery & periphery
nations, thus leaving only about 1 bb w/o much connection to the WES of
global cap |
|
| |
STIMULI FOR THE DEV OF A WES BEYOND THE GLOBAL CAP WES INCLUDE
THE EXISTENCE OF ALTERNATIVE MODELS, OF CONFLICT / CONTRADICTIONS,
& OF THEORY / IDEAS / VISION OF A NEW MODEL |
|
| |
It appears that w/ the fall of the Soviet Block, there is no significant
alternative to global capitalism |
|
| |
Alternatives to societal models often develop either at the margins
of the existing society, or as a result of a crisis, contradiction, or
other major upset in the dominant model |
|
| |
It appears that both stimuli for change in the global cap WES appear
to be operating to a limited extent |
|
| |
Some semi periphery & periphery nations are attempting to develop
econs on different models than the global cap WES of the core nations,
i.e. they are trying to have contacts w/ global cap of the core nations
only when it is to their advantage, & avoid the negative attributes |
|
| |
Nations who are attempting to develop econs on different models than
the global cap WES of the core nations include China, Bolivia, Venezuela,
& others |
|
| |
The global recession which began under the Bush Jr admin in 2007 has
moved the US more toward the New Deal / Euro model as seen in the policies
of the Obama admin in 2008 including reg of the financial sector, an energy
policy, & health care |
|
| |
While there is no doubt that the core nations, i.e. the center of the
global cap WES today, is under stress & changing, many options are
available & the extent of alternatives, & the extent & nature
of the crises will shape the final outcomes in the 21st C |
|
| |
Besides the alternative econ models of Asia, Africa, & So Am, &
besides the contradictions in the global cap WES recession of 2007 - 09,
other crises, i.e. stimuli for change exist in the form of a global pandemic,
global warming, energy collapse, & war, but often the major impetus
for change comes in a form not recognized by anyone in society |
|
| |
The existence of a theory / idea / vision of a new WES which offers
an alt to the global cap WES of today are many, i.e. many more than the
existing models, & thus there is no unified theory / idea / vision |
|
| |
The conservative alternative vision of a new WES which offers an alt
to the global cap WES of today builds on the foundation of Reaganomics
focusing on cutting taxes & govt, & letting the free mkt provide
wealth which trickles down |
|
| |
The liberal alternative vision of a new WES which offers an alt to
the global cap WES of today builds on the foundation of FDR & the New
Deal focusing on govt reg of the mkt, fostering a balance of power btwn
corps & Labor, limiting large corps / mkt concentration / monopolies
in such a manner so that everyone has a living wage |
|
Internal
Links
Top
|
Outline on the
WES & the Cold War
1945 - 1995
|
|
External
Links
|
|
|
AFTER WW 2, THE CORE NATIONS OF THE "COMMUNIST" SU &
THE GLOBAL CAPITALIST US CONFLICTED ON THE ECON, MIL, CULTURAL,
ETC. LEVELS ESTBING THE COLD WAR |
|
| |
The Post WW 2 period was unique in that the old core nations fell from
their positions of power, & they were replaced by the US, who was primarily
involved as a watchdog of the world for its capitalist allies |
|
| |
US & Brit forces met in Berlin, divided Ger in half, ceding half
to the SU |
|
| |
The SU moved quickly to take parts of NE Asia from Jap & to create
a new alliance against the capitalist block |
|
|
|
In the 50s, the "communist" SU became a rival superpower to the capitalist
US |
|
| |
THE RUSSIAN REV CREATED A TOTALITARIAN STATE W/ A BUREAUCRATIC
COMMAND ECON, NOT COMMUNISM |
|
| |
The Russian Communist Rev of 1917 attempted to create a industrialized
command econ out of a feudal state |
|
|
|
See Also: The Russian Rev |
|
| |
Indl had only just begun under Czar Alexander the II in the 1860s |
|
| |
A weak econ, foreign econ competition, & defeats in WW 1 lead to
the Russian Communist Rev of 1917 |
|
| |
A communist state became possible because the communists had been organizing
in Russia for decades, & their was a absence of a strong cap class |
|
| |
Lenin, & more so Stalin when he took power, believed that forced
industrialization was a necessity for the state's survival in the face
of foreign & internal threats |
|
| |
The old Russian traditions of an authoritarian state, a strong secret
police, & forced labor camps contributed to the econ / pol factors
that turned the SU into a bureaucratic dictatorship & not a communist
state |
|
| |
A centralized, authoritarian bureaucracy controlled the means of production
crating a political authority which merged w/ the property structure |
|
| |
While the SU called itself a communist nation, it never approached
the ideals of communism where people control the workplace / econ |
|
| |
The SU econ was controlled by a centralized bureaucracy, very similar
to fascism or feudalism, except w/ an industrial base |
|
| |
BECAUSE OF THE ENTHUSIASM OF THE PEASANTS AT HAVING CZARIST RULE
OVERTHROWN, AT FIRST THE SU ECON WAS DYNAMIC, BUT AS THE REALITIES OF A
TOTALITARIAN, COMMAND ECON SET IN, THAT ENTHUSIASM WAS LOST & THE ECON
STAGNATED |
|
| |
W/ Stalin's forced industrialization in the late 1920s, the SU achieved
modernization to the point where it was second only the the US Y some believed
it was superior because of accomplishments like Sputnik, the first satellite
to orbit the Earth, Yuri Gargaran, the first man to orbit the Earth, &
more |
|
| |
The SU's GDP was second only to the US in the early yrs of the Cold
War |
|
| |
By the 1990s, the SU had collapsed |
|
| |
A TYPICAL DEVL PATTERN OF CORE DOMINANCE IS THAT AS THEY GROW, THEY
DEV MIL POWER, WHICH ULTIMATELY WEAKENS THEIR ECON |
|
| |
Much like Fr, in its wars & econ competition against Brit during
the 1700s |
|
| |
THe SU econ was weakened due to military competition w/ the US |
|
| |
The Dutch, Brit, & US all had comparatively small military budgets
when they were rising to core dominance: mil power came later |
|
| |
The SU tried to achieve dominance in the mod world sys through mil
might, w/o first achieving the econ base to do so |
|
| |
When the SU fell, so did the communist govts of its satellite states
of Poland, Czech, et al |
|
| |
Revolutions such as these do not happen simply because people become
angry, resource mobilization theory holds that revs usually become massive
& successful due to changes in the balance of power btwn rebels &
pol authorities |
|
| |
TOTALITARIAN STATES LIKE THE SU HAVE TO EXPEND MUCH ENERGY
TO CONTROL THEIR EMPIRE |
|
| |
During 1953, 1956, & 1968 there were major revolutions in E Ger,
Poland, Hungary, & Czech |
|
| |
During these rebellions, the SU military & secret police came in
to crush the resistance |
|
| |
In 1981 in the face of rebellion Y the growing strength of the Solidarity
mvmt in Poland, the Polish army itself stopped the mvmt & put leaders
such as Lech Walesa in jail |
|
| |
By the late 1980s, much had changed in the SU, & the leadership
realized they were on the edge of a precipice |
|
| |
During the Polish revolt of ?? as E Euro waited in fear, & the
whole world watched in amazement, the SU military did not come |
|
| |
Mikhail Gorbachev took tanks out of Hungary in 1989 |
|
| |
The Berlin Wall fell in 1989, & so did 'communist' govts all over
E Euro |
|
| |
Intl competition among the core had led to the downfall of a major
power |
|
|
|
THE SU LOST POWER BECAUSE OF ECON & MIL COMPETITION W/ THE US
& GLOBAL CAP |
|
| |
While the SU fell ultimately because of econ factors related to the
econ competition btwn the US & the SU, the US side of the Cold War
did not come out of it economically stronger |
|
| |
Even though the US was the only military superpower after the fall
of the SU, the US econ was badly damaged by the years of focus on military
spending, R & D for mil prod rather than consumer prod, & a foreign
policy oriented toward military competition rather than econ interests |
|
| |
A popular saying of the time was, "The Cold War is over; Japan won" |
|
| |
"Other winners to the Cold War" include Germany |
|
| |
During & after the Cold War the US had to take the lead in protecting
the cap nations oil supplies & maintain stability in hot spots around
the world |
|
| |
In the last half century no event has changed the world more than the
fall of communism |
|
|
|
The US, the CIA, other nations & even the communist nations themselves
were caught totally unaware & unprepared for the dissolution of the
SU empire |
|
| |
THE COLLAPSE OF THE SU BEGAN IN ITS SATELLITE STATES OF POLAND &
OTHERS |
|
|
|
On Aug 19, 1989, a Polish Solidarity union leader (Mazowiecki) because
the first non communist prime minister of an E Euro nation since WW 2 |
|
|
|
Mazowiecki became the Polish PM when the communist govt of Poland,
w/ 'approval' by the SU allowed the labor union Solidarity, to legally
exist |
|
|
|
See Also: Solidarity |
|
|
|
Solidarity had struggled for decades for wkrs rights & general
freedoms for the people of Poland, & eventually they force the govt
to accept elections |
|
|
|
Solidarity candidates took a majority of seats in the Polish Parliament
which is esp amazing since many of these leaders had only recently been
in jail for their organizing activities |
|
|
|
On Nov 10, 1989 the Berlin Wall fell & the E Ger govt resigned |
|
|
|
On Nov 28, 1989 the communist govt in Czech resigned & gave power
to Vaclav Havel |
|
|
|
On Dec 23, 1989 a popular rev in Romania & other communist govts
in E Euro lead to widespread reforms |
|
|
|
On Oct 3, 1990 E & W Ger were reunited |
|
|
|
Only two yrs later in 1991, the SU suddenly ceased to exist, being
replaced by the democratic Russian Federation |
|
|
|
The changes in the communist block left Russia w/ a democratically
elected non communist govt & many independent states that broke off
from the old SU |
|
|
|
AFTER THE COLLAPSE OF THE SU, BUSH SR DECLARED A "NEW WORLD ORDER"
WHERE HE THOUGHT PEACE COULD REIGN, BUT THE CONTRADICTIONS OF THE GLOBAL
CAP WES FOSTERED A NEW, DECENTRALIZED ENEMY: RADICAL ISLAMISTS |
|
|
|
The implications of the fall of communism are far reaching economically,
culturally, militarily, & much more |
|
|
|
In relation to the WES, the fall of communism lead to the US being
the world's only super power relegating to it the duties of a super power
which in this case include the organization, maintenance, enforcement,
& defense of the world economic system ( WES ) |
|
|
|
The lack of an opponent left the US & the other core nations, esp
Jap & Euro, almost total freedom to shape the WES as they choose |
|
|
|
But because of the exploiting & enmiserating features of global
cap, poverty stricken areas, w/ totalitarian states, or very limited democracies
have become fertile recruiting grounds of radical Islamists who seek to
impose conservative religious strictures, as well as nearly feudal econ
relationships |
|
Internal
Links
Top
|
Outline on the WES
& the Dismantling of the New Deal & the Ascendancy of Reaganism
1980 - 2008
|
|
External
Links
|
| |
THE US DECLINED IN THE 70s & 80s DUE TO INTL COMPETITION, RISING
OIL PRICES, COSTS OF THE VN WAR & THE WAR ON POVERTY, STAGFLATION,
TECH, ETC. |
|
| |
After WW 2, Euro & Jap began "green field" factories & new,
participative labor relations, both of which gave them a competitive advantage
over the US |
|
| |
By the 70s, Euro & Jap products were common in the US, & US
corps failed to respond |
|
| |
In the 70s, OPEC tightened its grip on the price of oil, increasing
prices 5 fold, & this price increase affected everything in the econ,
driving up prices |
|
| |
The costs of the Vietnam War & Johnson's War on Poverty also pumped
money into the econ & were thus inflationary |
|
| |
By the end of the 70s, the costs of the VN War & the War on Pov
were being cut, & that w/ decreasing demand for US products, creating
a recession while prices were rising, resulting in the histly unique incidence
of stagflation |
|
| |
Jobs were also lost due to automation & robots & other changes
in tech such as JIT inventories |
|
|
|
Much of the increasing inequality over the past 30 yrs w/in the US
is related to the econ decline of the US in the 70s & 80s |
|
|
|
Because the US ind were no longer as competitive compared w/ some in
other nations, millions of well paying, WC jobs were lost |
|
| |
US wkrs had to accept lower pay because of domestic competition among
wkrs for a smaller number of jobs, but also because of competition from
low wage labor in semi periphery & periphery nations as US corps began
moving to other nations |
|
| |
REAGAN WAS ELECTED IN 1980 & POLICIES OF CUTTING TAXES,
GOVT,
THE SOCIAL SAFETY NET, REGS, ELIMINATING UNIONS, &
LETTING THE FREE MKT OPERATE WERE PUT INTO PLACE |
|
| |
In response to the intl comp, many US corps simply declined or even
went out of business as is the case w/ GM & Am Motors, respectively |
|
| |
US corps generally failed to follow the more successful models of Euro
& Jap, of estbing participative wkr relations, & a living wage
/ career strat |
|
| |
By the 90s a new element was the new nat strat by the US corp class
( CC ) & conservative politicians such as lean production, cutting
wages, cutting benefits, replacing career wkrs w/ temp wkrs, longer wking
hrs, union busting, & more |
|
| |
The CC became more politically active during the late 70s & early
80s resulting of the election of Reagan in 80 & Republican controlled
Congress in 94 for the 1st time since the 50s |
|
| |
Corp pressure for more support from govt through lower taxes, fewer
labor laws, less govt support for unions, less govt reg of indl practices,
fewer limitations on mergers, & more became stronger w/ the Republican
controlled Congress in 94 |
|
| |
REAGAN'S POLICIES REVERSED THE BALANCE OF POWER BTWN MGT
& LABOR ESTBED BY FDR's NEW DEAL, OFTEN CALLED CORPORATISM,
ADVANCING THE POWER OF CORPS, LIMITING THE POWER OF LABOR |
|
| |
Innovation in tech & production processes help the US econ surge
in the 90s, but a more imp factor was the ability of US corps to get more
work from wkrs at less cost compared to earlier eras |
|
| |
The strat of the CC was to reduce "total unit labor cost", i.e. cut
wages AND benefits resulting in lower costs in the US compared to the other
7 largest cap nations except Fr |
|
| |
By the end of the 90s, the average wages of Am wkrs were substantially
below the ave of other indl nations, benefits were the lowest, & the
ave wk week & yr was the longest |
|
| |
The trend of lower total unit labor cost continued into the 21st century
& the GW Bush admin |
|
| |
Starting in the 70s, there was an accelerated loss of US job overseas |
|
|
|
It is easier for US than Euro corps to close local ops & move those
jobs to nations where wages & ben are a fraction of the US |
|
|
|
There is no US govt agency that tracks job losses over seas, what is
often called outsourcing by its supporters, & deindustrialization by
its critics |
|
|
|
See Also: Deindustrialization |
|
|
|
Half a million jobs to deindustrialization were lost in 2004 |
|
|
|
Work conditions in the US underwent a transformation that allowed corps
to produce at lower costs than other major ind nations |
|
| |
The transformation of the US econ mirrored changes in the US welfare
sys & other imp aspects of society |
|
| |
The transformation of western society from the 80s through 2008 is
often called the Reagan Revolution ( RR ) & the economics of this paradigm
is called Reaganomics, which was labeled by his, at that time Republican
opponent ( later to become his VP ) GHW Bush, as "voodoo economics" |
|
| |
The Reagan Revolution essentially reversed the New Deal Policies policies
of FDR & succeeding admins that had guided the US since the 40s |
|
Internal
Links
Top
|
|
Outline on Core
Conflict & Hegemony
|
|
External
Links
|
| |
- Supplement: CIA Nation
Factbook |
Link
|
| |
- Supplement: CIA Nation
Listing |
Link
|
| |
- Supplement: CIA Nation
Profile |
Link
|
| |
HISTLY, MOST WARS HAVE BEEN THE RESULT OF CONFLICT AMONG
CORE NATIONS |
|
| |
The mod world sys is similar to an intl strat sys, w/ conflict over
competing interests, much like class conflict |
|
| |
Conflict is centered esp around the differing interests of rich &
poor nations, but it is also evident among the core nations themselves |
|
| |
Not all core nations are equal in wealth & power & over the
ages they have engaged in conflict through war, diplomacy, politics, econ
competition, etc. |
|
| |
There has always been a collection of core nation in competition w/
each other for dominance & hegemony over periphery nations |
|
| |
At times the conflict is overt & deadly, w/ shifting core alliances
as nations try to gain better positions in the process of core conflict |
|
| |
At other times, there has been one core nation w/ clear dominance;
e.g. the Babylonian Alexander the Great's Empire, the Roman Empire, the
British Empire, the American post cold war dominance |
|
| |
ONE CORE NATION BECOMES A SOLE SUPERPOWER WHEN IT LEADS IN
PRODUCTIVITY,
TRADE,
FINANCING,
& MILITARY POWER |
|
| |
For Wallerstein, one nation is dominant, a superpower, when it leads
in 3 econ rankings, including: |
|
| |
1. productivity dominance w/ the ability to produce products
of higher qual at a lower price |
|
| |
2. trade dominance; i.e. the balance of trade favors the
dominant nation because more nations are buying the product os the dominant
nation than it is buying from them |
|
| |
3. financial dominance; i.e. w/ a favorable balance of
trade, more money is coming into the nation than is going out & so
the bankers of the dominant nation become the bankers of the world, w/
control of the world's financial resources |
|
| |
4. military dominance; i.e. clear military superiority
w/ the capability to defeat several challengers at once, but Wallerstein
sees military dominance as much more of a secondary qual in that most superpowers
rise to dominant core status based on econ dominance & then estb military
dominance |
|
| |
Mil dominance has hi costs & often leads to the decline of a core
nation |
|
| |
No nation has used mil strength as a means to gain econ dominance &
each of the previously dominant core nations has achieved econ dominance
w/ relatively small levels of military spending, & each began to lose
econ dominance w/ later mil expansion |
|
| |
IDEOLOGICAL HEGEMONY, I.E. DOMINANCE OF PEOPLE'S IDEAS / CONSCIOUSNESS
HAS BEEN USED TO ESTB & MAINTAIN RULE & LEGITIMATION IN MODERN
GLOBAL CAP WES's |
|
| |
Wallerstein argues that from the beginning of the mod WES from the
1400s & 1500s, there have been only 3 brief periods where one core
nation has come to dominate, w/ each period lasting less than 100 yrs |
|
| |
The dominant core nations, e.g. superpowers of the mod WES are the
Netherlands, the British, & the Americans |
|
| |
There were many dominant ancient WES such as Egypt, Sumeria, Alexander's
Empire, the Roman Empire, Chinese Empires, etc. |
|
| |
Most of the ancient empires relied on coercion to estb dominance while
the modern empires have all relied on ideological hegemony |
|
|
|
The process & ability to legitimize the social relations in a social
system is called ideological hegemony or just hegemony |
|
| |
Hegemony is the cultural leadership / domination exercised by the ruling
class where-in people willingly embrace policies & practices that are
not in their own interests |
|
| |
Gramsci developed the concept of hegemony which is the cultural leadership
exercised by ruling class |
|
| |
Hegemony is the ruling ideology or false consciousness |
|
| |
Compared to hegemony, coercion is a less effective form of control
which is based on force |
|
| |
For progressive soc change to occur, the working class must estb hegemony,
where-in wking class culture becomes dominant |
|
| |
Working class hegemony could be built via an alliances of common interests |
|
| |
Most of the over 1 bb people of the core directly involved in the global
cap WES willingly embrace it & are not seeking major, or structural
change even though many are living a life in poverty or near poverty |
|
| |
The willing involvement of people directly involved in the global cap
WES is a result of the processes of legitimation & the fact that they
have more global understanding than any people in hist & understand
that they could be living a semi peripheral or peripheral level of existence |
|
| |
See Also: The Processes of Legitimation |
|
| |
The several bb people of the semi periphery & periphery who are
directly & indirectly involved in the global cap WES are generally
less supportive of this system because they more often experience poverty
& extreme poverty & because they are less subject to the legitimation
processes of ed, the media, etc. |
|
| |
Never the less, many people of the semi periphery & periphery seek
to become part of the global cap WES because this is the best / only alternative
they see in relation to their own traditional econ |
|
| |
People in the core, semi periphery, & periphery are rarely even
aware to the various versions of global cap of the Reaganomics, New Deal,
& Asian models, much less any other type of alternative |
|
Internal
Links
Top
|
|
External
Links
|
|
|
- Supplement: List of Independent
States |
Link
|
|
|
GERMANY IS A CORE NATION W/ A MIDDLE PATH IN THE WES COMPARED
TO THE US & JAPAN; W/ MID LEVELS OF REGS, TAXES, SAFETY NET, LABOR
RELATIONS, INCOME INEQUALITY, ETC. |
|
| |
Germany is the 3rd largest econ, & is more similar to the US than
Japan |
|
| |
Since WW 2, Ger has had extensive labor laws such as the Works Constitution
Act, co determination laws, strong works councils in every company, along
w/ powerful unions |
|
| |
Ger wkrs have much more influence in the wkplace than wkrs in any other
nation |
|
| |
Ger wkrs indulgence how each corp is managed & operated, as well
as much influence in how the overall econ is run |
|
| |
While most capitalists in the US would tell US that you cannot create
a strong econ w/ hi levels of wkr 'interference,' & yet the Germans
have done just that |
|
| |
W/ these relations of production, Germans have rebuilt their WW 2 war
torn nation into the 3rd largest econ power |
|
| |
Ger has much less income inequality; the lowest of the indl nations |
|
| |
GERMANY HAS THE HIGHEST BALANCE OF POWER BTWN CORPS & LABOR
IN WHAT MAY BE CALL A NEW DEAL OR CORPORATIST SYSTEM |
|
| |
Ger, & most nations in Euro are relatively more influenced by class
interest below the corp class as compared to the US |
|
| |
Euro nations tend to have strong & effective labor unions, &
govt controls protecting the wking class, Y even significant ownership
of stock in major corps that give classes below the CC a means of influencing
corps through govts |
|
| |
While the term 'New Deal' comes from FDR's policies in the US in the
1930s, Germany's system best exemplifies this model today since the US
moved away from it to Reaganomics |
|
| |
The New Deal polices of Germany embrace govt regs limiting corp mkt
concentration, i.e. monopoly power, maintaining a balance of power btwn
corps & Labor, a social safety net, reg of financial sector of business,
etc. |
|
Internal
Links
Top
|
|
Outline on WES
Characteristics
|
|
External
Links
|
| |
WHILE THE WES HAS DEVELOPED OVER HALF A MILLENNIUM,
IT HAS ONLY BEEN RECOGNIZED AS SUCH BY A FEW |
|
| |
After the 1st indl societies took root after the decline of feudalism,
it became apparent that separate nations were more tied through econ exchange |
|
| |
The extent of the econ ties among nations grew more rapidly than has
the awareness of these ties so that WST was not developed until centuries
after world systems developed, & globalization as a popular concept
was not widespread until the 1990s |
|
| |
In the works of Adam Smith in the 1700s, there was little awareness
of the WES |
|
| |
In the works of Karl Marx in the 1800s, Marx recognizes that capitalism
is a worldwide system, but does little in the way of analysis, leaving
that to V.I. Lenin in the first half of the 1900s w/ his analysis of capitalist
imperialism |
|
| |
By the middle of the 1900s, the global cap WES is reaching a truly
global scale |
|
| |
Because of the failure of recognition of the WES, many observers of
globalization mistakenly believe it has been extremely rapid & widespread,
but a hist analysis shows that it has been a long time coming |
|
| |
THE WES PARALLELS THE INTL DIV OF LABOR & NATIONS ACT AS CLASSES,
E.G. THE UC / CORE, THE MC / SEMI PERIPHERY,
& THE LC / PERIPHERY |
|
| |
The worldwide div of labor parallels the traditional view of the div
of labor in many concepts & processes |
|
| |
The traditional view of the div of labor sees the relations of production
as bound w/in political or national boundaries, but the worldwide div of
labor cuts across national borders so that the parts of production are
completed in many different nations |
|
| |
FOR THE WES OF GLOBAL CAP, WHAT WAS ONCE TRUE IN ITS RELATIONSHIPS
W/IN NATIONS IS NOW TRUE FOR RELATIONSHIPS ON A GLOBAL SCALE |
|
| |
In general, what is valid for nation state capitalist systems is also
true for the capitalism WES |
|
| |
The chars of cap, including a cap prop structure, a cap occupational
div of labor, & a cap bureaucratic power structure interact creating
particular outcomes w/in nation states, but also in the cap WES |
|
|
|
One of the char of cap seen at both the nation & WES levels is
that they are: |
|
| |
1. distinct classes are found in relation to the obj div
created by ownership of the means of prod & position in the occ structure |
|
| |
2. (a) an UC that owns & / or controls
the means of prod, (b) a MC w/ little or no ownership of
the means of pro, but w/ a higher occ position, & (c) a WC
having no ownership & performing occ tasks for owners |
|
| |
3. the dist of valued resources based on class
position |
|
| |
4. dynamics of class conflict & change based on differing
dist of rewards in the class sys |
|
| |
5. various mechanisms to maintain the favored position of those
on top of the strat sys |
|
| |
Once we recognized that cap prop relations & an occ div of labor
exit beyond nat boundaries, we recognized that there is a WES w/ chars
similar to the chars of any cap sys |
|
| |
In the WES, the primary unit of analysis has shifted from classes w/in
nation to nations that are in many respects like classes |
|
| |
While there are class relations among nations, the class relations
w/in nations are still in op |
|
|
Link
|
The Table on Examples of Core, Semi
Periphery, & Peripheral Nations demonstrates that the US, Euro,
Japan, Russia, & China make up the core, while there are many more
semi peripheral, & peripheral nations |
|
| |
CORE NATIONS ARE SIMILAR TO THE UC |
|
| |
The core nations are the most econ diversified, wealthy, & powerful,
econly & militarily |
|
| |
The core has more complex occ structure w/ generally less income inequality
compared w/ other nations, w/ the exception of the US |
|
| |
The core nations have relatively more complex & stronger state
instits that manage econs internally & externally |
|
| |
Core nations have many means of influence over non core nations but
are themselves relatively ind of outside control |
|
| |
THE SEMI PERIPHERY REPRESENTS THOSE MIDWAY BTWN THE CORE
& THE PERIPHERY, & ARE SIMILAR TO THE MC |
|
| |
These are the nations who are moving toward industrialization &
a diversified econ |
|
| |
Semi peripheral nations may also be midway btwn the core & the
periphery in terms of state strength, a complex occ structure, national
wealth, & income inequality |
|
| |
Semi peripheral nations are trying to overcome their weakness in relation
to the core, & are not as subj to outside manipulation by the core
nations |
|
| |
THE PERIPHERY IS SIMILAR TO THE LOWER OR WORKING
CLASSES |
|
| |
The peripheral nations are similar to the lower or working classes |
|
| |
Peripheral nations are the least econly diversified, tending to depend
on one type of econ activity such as extracting & exporting raw materials
to the core nations |
|
| |
Peripheral nations are poor, w/ less div of labor, & a hi level
of income inequality |
|
| |
In the peripheral nations a wide div btwn wealthy elites & a poor
common mass |
|
| |
Peripheral nations have relatively weak state instits & are strongly
influenced by outside nations both econly & militarily |
|
| |
NATION'S CLASS POSITION IS BASED ON THEIR RELATIONSHIP TO THE WORLD
PRODUCTION FORCES: CORE NATIONS OWN / CONTROL, SEMI PERIPHERY
NATIONS SUPPLY SKILLED LABOR, THE PERIPHERY NATIONS SUPPLY
LABOR
& RAW MATS |
|
| |
The WES is a type of class sys based on the relationship of a nation
to the world production forces |
|
| |
Class position in the world system is defined w/ respect to (a) Marx's
perspective of class esp as related to ownership & non ownership of
the means of prod & (b) Weber's perspective of class which in addition
to ownership stresses econ exchange relations & occ skill level |
|
| |
The core nations through their major corps own & control the major
means of pro |
|
| |
The semi peripheral nations are in a mixed or mid position in the WES
w/ some ownership, influence of exchange relations, & a mid level of
skill in the occ structure |
|
| |
The peripheral nations own very little, even when factories, etc. are
located in peripheral nations, & provide the less skilled labor, of
for example, extracting raw materials which are often exported to the core
& semi peripheral nations |
|
Table
on Examples of Core, Semi Periphery, & Peripheral Nations
|
CORE
US
Japan
Germany
China
Netherlands
England
France
Italy
Canada
Austria
Russia |
SEMI PERIPHERY
Mexico
Argentina
So Korea
Ireland
Chile
Thailand
Taiwan
India
Pakistan
Brazil
Israel |
PERIPHERAL
Chad
Uganda
Burma
Laos
Bolivia
Philippines
El Salvador
Haiti
Dominican Republic
Somalia
Cambodia |
| The Table on Examples of Core, Semi Periphery, & Peripheral
Nations demonstrates that the US, Euro, Japan, Russia, & China make
up the core, while there are many more semi peripheral, & peripheral
nations |
|
Internal
Links
Top
|
|
Outline on the
Mixed Economies: 3 Capitalist Models in Competition in the 21st Century
|
|
External
Links
|
| |
THE VARIANTS OF THE GLOBAL CAP WES, I.E. IN THE US,
GER,
&
JAP, ARE ALL IN COMPETITION W/ EACH OTHER |
|
| |
The Japanese & the Euros have notices that the US is becoming more
competitive |
|
| |
The UK has followed the US lead w/ some econ improvement since the
1st yrs of Reaganomics |
|
| |
By the end of the 90s, the UK, like the US had the same trend of increasing
income inequality, lower wkr pay, & few benefits |
|
| |
In the 70s & 80s the UK was called "the sick man of Europe" because
of its econ weakness, but after Thatcher & Blair followed Reaganomics,
as indicated in the Table on Core Nation Econ Indicators, the UK increased
its econ competitive condition while the Brit wking class suffered a decline
in their living standards |
|
| |
For the rest of Euro, the focus was less on Reaganomics & more
on the econ advantages of the Euro Union ( EU ) unification & improved
mgt / labor coop |
|
| |
The idea for most of Euro was that more econ cooperation will make
their econs more efficient & competitive |
|
| |
W/ far greater welfare & unemployment benefits that the US, more
pay & benefits to wkrs, & shorter wking hrs, Euros are now becoming
worried that they will be left behind if the new Reaganomics strat continues
to succeed |
|
| |
THE NEW DEAL, REAGANOMICS, & THE ASIAN MODELS
ARE ALL VARIATIONS OF THE GLOBAL CAP WES |
|
| |
Whether Reaganomics as expressed in lower wages, lower benefits, cutting
jobs, & increasing wkr hrs will maintain US econ dominance in the long
run is uncertain |
|
| |
Many observers in the US argue that the US can regain econ strength,
& gain a society w/ fewer social problems, by moving in the opposite
direction away from Reaganomics |
|
| |
Some observers believe the US should look at how Germany & Japan
are able to train their wkforces & obtain wkr involvement in corporate
decision making as a way to improve competitiveness |
|
| |
Ger is based on FDR's New Deal econ model which estbes a balance of
power btwn labor & mgt, govt reg to limit corp power, & a social
safety net |
|
| |
Jap & other regional nations are based on the Asian Model which
estbes a hi level of gov control of corp dev & investment, & a
ethic which promotes econ equality |
|
| |
The US needs a better ed, better trained, better paid, & more motivated
& loyal wkforce that rewards nations that are able to compete in hi
tech ind |
|
| |
The US must compete in a new hi tech world econ by focusing more on
ed & motivation of the bottom 50 % of the wkforce, rather than by beating
down wages & labor |
|
| |
It is the better ed, more skilled, & more loyal wkrs, because of
more labor participation & union involvement, of Euro & Japan who
will give nations the edge |
|
| |
OBSERVERS DISAGREE ON WHICH OF THE 3 WES'S IS BEST:
THE NEW DEAL, REAGANOMICS, OR THE ASIAN MODEL |
|
| |
Whether or not the critique of Reaganomics & the responses to it
are valid, soc strat & the econ sys of the US, Europe, & Japan
are significantly different forms of capitalism, allowing different classes
to push through agendas favoring their interests relative to those of other
classes |
|
| |
The three capitalist, econ systems operating in the core nations today
go by various names such as |
|
| |
1. the New Deal / corporatist system / cooperative capitalism,
etc. which exists in Germany, France & other Euro nations |
|
|
|
1. Reaganomics / neo liberalism / corp dominated cap, etc.; which
exists in the US & the UK |
|
|
|
3. the Asian development model / a planned economy, etc. which
exists in Japan & other Asian nations |
|
|
|
THE NEW DEAL, REAGANOMICS, & THE ASIAN MODEL ARE ALL FORMS OF
A 'MIXED ECONOMY' |
|
| |
The three capitalist, econ systems operating in the core nations today
are all types of "mixed capitalism" as contrasted w/ the earlier forms
of capitalism, often called pure capitalism or laissez faire capitalism |
|
| |
See Also: Mixed Capitalism |
|
| |
See Also: Pure Capitalism |
|
|
|
Mixed economies are economic systems in which the govt provides
extensive social services & performs some major economic functions
while manufacturing & other industries are at least in part, privately
owned, & provides a regulatory structure which limits the corp power
of mkt concentration, monopoly, etc. |
|
|
|
The three systems today differ not only on how the forces & relations
of production are organized, but also along the many other dimensions including
their welfare systems, the level of democracy, personal freedoms, &
more |
|
|
|
The three systems today differ on the forces & relations of production
in relation to wkr participation, union participation, job security, the
skilling vs. deskilling of jobs, careers vs. temp work, developing viable
national productions systems vs. outsourcing & deindustrialization,
& more |
|
|
Link
|
The Table on the Competing Forms of
Capitalism demonstrates the key differences in the systems & the
advantages & disadvantages of each type of sys, w/ the major disadvantages
being econ crisis under Reaganism, & slower growth & higher taxes
under the New Deal & the Asian Model |
|
| |
The 3 systems lead to different stats for competing in today's WES
w/ differing positive & negative outcomes for people in each nation |
|
| |
Just as Brit, Holland, & Fr were competing w/ each other from different
pol & econ instits in the 1700s, by the mid of the 21st C we will likely
find out which of the 3 current forms of capitalism will take or continue
to lead |
|
| |
CHINA IS A 4TH TYPE OF WES, A HYBRID OF PLANNED
/ SOCIALIST ECON MIXED W/ A CAP SYS W/ AN AUTHORITARIAN POL
/ CUL SYS |
|
| |
A fourth model is emerging in the WES, that of China, which is a hybrid
planned / socialist & capitalist system |
|
| |
China is now the 4th largest econ behind but currently it has the most
rapid rate of growth & is thus expected by many to be the largest econ
by 2050 |
|
|
|
China, more than most other Asian nations, embraces an authoritarian
pol / cul sys that maintains a very hi level of control in civil society |
|
Table
on the Competing Forms of Capitalism
|
External
Links
|
The New Deal / Corporatist System /
Cooperative Capitalism, etc. |
Reaganomics / Neo Liberalism /
Corp Dominated Cap, etc. |
The Asian Development Model /
A Planned Cap Economy, etc. |
|
Nations:
Germany, France & other Euro nations |
Nations:
The US & the UK |
Nations:
Japan & other Asian nations |
|
Characteristics:
Large welfare state
State reg of the econ
Some econ planning
Strong unions |
Characteristics:
Small state
Little govt regs
Weak unions
Low labor costs |
Characteristics:
Strong state intervention
Extensive regs
Extensive econ planning
Weak unions |
|
Outcomes:
Hi prod costs
Low inequality
Hi wkr benefits
Hi job security
Hi unemployment
Low poverty
Hi taxes |
Outcomes:
Low prod costs
Hi inequality
Low wkr benefits
Less job security
Low unemployment
Hi poverty
Low taxes |
Outcomes:
Medium prod costs
Low inequality
Medium wkr benefits
Medium job security
Low unemployment
Low poverty
Low taxes |
|
| Advantages: |
Advantages: |
Advantages: |
|
| Disadvantages: |
Disadvantages: |
Disadvantages: |
|
| The Table on the Competing Forms of Capitalism demonstrates
the key differences in the systems & the advantages & disadvantages
of each type of sys, w/ the major disadvantages being econ crisis under
Reaganism, & slower growth & higher taxes under the New Deal &
the Asian Model |
|
|
Internal
Links
Top
|
Outline on the
New Deal
aka a Corporatist System / Cooperative Capitalism
|
|
External
Links
|
|
|
- Supplement: New Deal
Programs |
Link
|
| |
- Supplement: The New Deal |
Link
|
|
|
THE US EMBRACED A NEW DEAL / CORPORATIST / COOPERATIVE
ECON SYS FROM THE 1930s TO THE 1980s, & THE EUROS STILL
EMBRACE IT |
|
|
|
One of the three capitalist, econ systems operating in the core nations
today goes by various names such as the New Deal / corporatist system /
cooperative capitalism, etc. which exists in Germany, France & other
Euro nations |
|
|
|
In Continental Euro nation, esp Germany & Fr, the UC / CC, &
MC / WC in alliance w/ govt, have arrived at a sort of power sharing agreement
so that the govt helps organize the econ, & protect the interests of
all parties |
|
|
|
A central component of the New Deal sys in contrast to Reaganomics
is strong labor unions & labor laws, restricting what corp elites can
do in the econ & pol sys |
|
| |
In the 1980s, under President Reagan & the following Presidents,
the New Deal econ sys began to be transformed to the new Reaganomics variant
of global cap |
|
| |
While some Euro nations embraced facets of Reaganomics, esp the UK
under Thatcher, in general the Euros have retained more of the New Deal
aspects of their econ |
|
| |
THE NEW DEAL REGULATED CORPS, LEGALIZED UNIONS, ESTBED
A SOCIAL SAFETY NET, & BEGAN GOVT MGT OF GROWTH & DECLINE
OF THE ECON THROUGH FISCAL & MONETARY POLICY |
|
| |
Broadly, the fundamental quals of the New Deal include: |
|
| |
a. regulation of corps to limit monopoly power, mkt concentration,
unsafe practices, unsafe products, price fixing, etc. |
|
|
|
b. the legalization of unions & the Labor Mvmt which
also has the effect of regulating corps w/ respect to wages, benefits,
career paths, working conditions, pensions etc. |
|
| |
c. the establishment of a social safety net, esp as seen
in Social Security retirement benefits & Medicare (national healthcare
for the retired) & Medicaid (national healthcare for the poor) |
|
| |
d. mgt of the growth & decline of the econ by embracing
'Keynesian economics' which called for stimulating an econ to make it grow,
or restricting an econ to slow growth by fiscal & monetary policy;
i.e. govt spending & govt control of the money supply, receptively |
|
| |
THE NEW DEAL CONSISTS OF MANY GOVT PROGRAMS & INITIATIVES SOME
OF WHICH STILL FUNCTION TODAY, I.E. SOC SECURITY |
|
|
|
In the throes of the Great Depression, which began w/ the stock mkt
crash in 1929 under President Hoover, btwn 1933 &1935 FDR began to
pass his econ & soc policies with the goals of what historians call
the 3 Rs, of giving relief to the unemployed & badly hurt farmers,
reform of business and financial practices, & promoting recovery of
the economy during the Great Depression |
|
|
|
The "First New Deal" (March 4, 1933) was aimed at meeting the needs
of practically all major groups, from banking & railroads to industry
& farming |
|
|
|
The New Deal innovated with banking reform laws, work relief programs,
ag programs, & industrial reform (the National Recovery Administration,
NRA), & the end of the gold standard |
|
|
|
A "Second New Deal" (May 14, 1935) included labor union support, the
Works Progress Administration (WPA) relief program, the Social Security
Act, & programs to aid the ag sector, including tenant farmers &
migrant wkrs |
|
|
|
The Supreme Court ruled several programs unconstitutional; however,
most were soon replaced, w/ the exception of the NRA |
|
|
|
The Fair Labor Standards Act of 1938 was the last major program launched,
which set maximum hours & minimum wages for most categories of workers |
|
|
|
THE EFFECTS OF THE NEW
DEAL ARE TO LEVEL OUT THE BOOMS & RECESSIONS OF THE MKT, &
TO LIMIT THE ILLS OF CORP POWER |
|
|
|
In Euro, esp Germany, corps are much less able to dominate
the econ & pol sys, but have to work in a competitive alliance w/ the
state & labor |
|
|
|
Histly, mkt sys have shown a fairly regular pattern of rapid econ growth,
i.e. booms, & econ decline, i.e. recessions but since the implementation
of Keynesian econ, these mkt trends have been moderated |
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During the Clinton admin (1992 - 2000) the US experienced its longest
growth period, & at the end of this boom, the MC experienced a couple
yrs of real wage growth |
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During the Clinton econ boom, some economist speculated that the US
had finally learned to manage the econ so well that we might see the end
of recession |
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However, this boom ended in 2002 w/ Bush Jr's minor recession, &
2007 w/ a major recession, but even these recessions are not as devastating
as those before the Great Depression |
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The limits of corp power may seem inadequate to many today, but at
least in the core nations, corps have lost much of the power that earned
them the name "robber barons" in the 1800s & early 1900s |
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Internal
Links
Top
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Outline on Reaganomics
aka Neo Liberalism, Corp Dominated Capitalism
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External
Links
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REAGANOMICS EMPOWERS THE UC TO LEAD SOCIETY FOR THE BENEFIT
OF ALL |
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One of the three capitalist, econ systems operating in the core nations
today goes by various names such as Reaganomics / neo liberalism / corp
dominated cap, etc.; including the US & the UK |
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The political econ sys of the US & to a lessor degree, the UK,
is one where the govt stays relatively uninvolved in the econ, i.e. w/
little econ planning & almost no govt ownership of industry |
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The neo lib poli econ sys results in more freedom for a corporate class
to run the econ as they see fit |
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The UC & the CC are clearly the dominate the sys & other classes,
w/ the MC & WC having little influence in the govt & in obtaining
govt protection w/ labor laws, income protection, social benefits, etc. |
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THE PRINCIPLES OF REAGANOMICS INCLUDE THE FREE MKT, CUT
REGS & TAXES, TRICKLE DOWN ECON, & ESTB FOREIGN
POLICY FROM A POSITION OF POWER |
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The major principles of Reaganomics include: |
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1. let the free mkt operate |
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2. cut govt regs so the UC & corps can operate optimally |
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3. cut taxes so the UC & corps can reinvest to the benefit
of all society, as opposed to letting govt inefficiently redistribute money |
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4. let wealth trickle down from the UC to the other classes |
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5. estb foreign policy from a position of power |
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REAGAN CAME TO POWER AFTER AM'S HUMILIATION IN VIETNAM, WATERGATE,
AN ECON RECESSION, & THE HOSTAGE CRISIS IN IRAN |
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Reagan was elected President in 1980, defeating then President Carter |
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Reagan came to power at the end of the Vietnam War & the Watergate
era, & the US was in econ stagnation & had suffered intl humiliation
when the Shah of Iran was overthrown & Am hostages were held in Tehran
& Carter's rescue planned failed |
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Reaganomics made the rich richer while the other classes essentially
maintained their position or slightly declined |
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Reaganomics have dominated in US econ & foreign policy since Reagan
was elected in 1980 through the Reagan, Bush Sr, Clinton, & Bush Jr
admins, but Obama has returned to some form of New Deal policies |
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Internal
Links
Top
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Outline on the Asian
Model
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External
Links
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THE ASIAN MODEL COMBINES THE FREE MKT W/ A GOVT BUREAUCRATIC
CLASS TO MANAGE ECON DEV, & A PRINCIPLE OF EQUALITY |
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One of the three capitalist, econ systems operating in the core nations
today goes by various names such as the Asian development model / a planned
economy, etc. including Japan & other Asian nations |
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The Asian Model the state has more independent, or autonomous pol power,
as well as more control over the econ |
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As is the case of Japan, there govt ownership of ind, but the priv
sector is rigidly guided & restricted by bureaucratic govt elites |
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Bureaucratic govt elites are not elected officials & are less subject
to influence by either the CC or WC through the pol process |
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A govt ministry can have the freedom to plan the econ & look to
long term nat interests w/o having their econ policies disrupted by either
CC or WC short term, narrow interests |
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THE ASIAN MODEL IS SO SUCCESSFUL THAT THE ASIAN PACIFIC REGION IS
GROWING
FASTER THAN ANY OTHER REGION |
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Japan & other emerging econs in east & SE Asia have a variation
of the state development capitalism most exemplified by Japan |
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In the Asian Model the state is much stronger & usually able to
force capitalists & labor to follow its regs & long term econ planning
goals |
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The Asian Model has created record econ growth & industrialization
in many Asian Pacific nations including Korea, Taiwan, Thailand, etc. |
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China's form of econ, evolving out of a socialist system, is a unique
sys combing some quals of Reaganomics & the Asian Model |
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The Asian Model has been so successful that if current trends continue,
the Asian Pacific region will produce over half of the world's econ output
by 2050 |
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THE PRINCIPLES OF THE ASIAN MODEL INCLUDE FREE MKT, LIMIT
OF UC / CORP POWER FOR BENEFIT OF ALL, MANAGE ECON DEV, EQUAL
DIST OF WEALTH, A CORP SOC SAFETY NET, & PARTICIPATORY
RELATIONS OF PRODUCTION |
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The principles of the Asian model include: |
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1. letting the free mkt operate |
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2. managing / limiting the power of the UC & corps for the
benefit of all society |
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3. having govt bur manage & regulate the econ for planned
econ dev |
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4. estb a relatively equal dist of wealth |
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5. having a minimal social safety net, but having corps minimize
the effects of a recession on all classes by keeping unemployment low,
keeping wages relatively equal, etc. |
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6. participatory relations of production whereby, in today's
hi tech econ, all wkrs have a profl relationship w/ mgt, & ideas are
generated at the shop floor & passed up the chain of command |
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Internal
Links
Top
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Outline on the
Outcomes of the WES
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External
Links
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CORE NATIONS BENEFIT FROM THE GLOBAL CAP WES BOTH ON THE
CONSUMPTION
& PRODUCTION SIDES OF THE ECON |
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Like a class sys w/in a nation, class positions in relation to the
WES create an unequal dist of rewards or resources |
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The UC or core nations receive the greatest share of surplus production,
while periphery nations receive the least |
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Because of their power, the core nations are usually able to purchase
raw materials & other goods from the non core nations at low prices
while demanding higher prices for their exports to non core nations |
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BENEFITS FROM THE GLOBAL CAP WES FOR THE CORE INCLUDE
RAW
MATS, PROFITS, MKTS, LABOR, &
PROFL
LABOR |
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An important benefit coming to core societies from their domination
of the periphery is: |
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1. access to a large quantity of raw materials |
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2. enormous profits from direct capital investments |
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3. a mkt for exports |
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4. cheap labor |
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5. skilled professional labor through migration of these
people from the non core to the core |
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NON CORE NATIONS ARE GENERALLY EXPLOITED BY THE CORE
NATIONS |
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In non core nations there is an unequal exchange or exploitative relationship
w/ core domination |
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The ideology pushed by the core nations is that the periphery nations
benefit from their relations w/ core nations |
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While some benefits for the periphery may be realized, the total impact
of core domination harms the econ & political well being of people
in periphery nations, esp in the long run |
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Periphery nations get a mkt for their raw materials, military aid,
factories built (& owned), jobs, technical equip & expertise, etc.;
all of which may yield a net benefit or cost for the host non core nation |
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The investments by the core nations by non core nations may be beneficial
or exploitative depending on the the nature of the econ relationship which
is negotiated by the host non core nation or non core firm & the mult
national core corp, i.e. btwn Bolivian natural gas wells & Schlumberger |
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COSTS OF THE GLOBAL CAP WES TO THE PERIPHERY & PERIPHERY INCLUDE:
LITTLE ROYALTIES, MIN PROFIT, VOLATILE MKTS, DESTRUCTION OF TRADL MKTS,
LABOR SKIMMING, AVOIDANCE OF LABOR, SAFETY, & ENVL LAWS |
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Important costs coming to semi periphery & periphery nations include: |
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1. raw material harvest w/ little or no benefit coming
to the nation in the form of royalties, econ dev, labor / ownership dev,
infra structure dev, etc. |
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2. minimal profits for local govts or corps |
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3. a volatile mkt which creates econ boom & bust periods |
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4. a export only mkt which destroys local, tradl mkts,
making the nation dependent on the export mkt / core nations |
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5. "labor skimming," i.e. the process whereby the most
motivated & skilled labor leaves the home nation to work in the core
nations |
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6. extractive & production industries which seek to
avoid labor laws & safety laws |
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7. extractive & production industries which seek to
avoid environmental laws |
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NON CORE NATIONS COULD BENEFIT FROM A GLOBAL CAP WES, IF THEY HAD
ENOUGH POWER, BY NEGOTIATING A REVERSAL OF ANY OF THE EXPLOITATIVE RELATIONSHIPS |
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Important benefits coming to semi periphery & periphery nations,
if they were equitably negotiated, could include: |
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1. raw material harvest w/ substantial benefits coming
in the form of royalties & econ dev |
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Bolivia now owns all mineral rights in its nation & has negotiated
a more equitable extraction contract w/ Exxon Mobile & other multi
nat corps |
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2. profits for local govts or corps, if they had some
% of ownership of the facility in their nation |
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China requires a minimum of 48 % ownership of any facility built in
China |
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| |
3. the moderating of volatile intl mkts by econ dev of
local mkts as well as the econ dev of a variety of intl mkts |
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4. the dev of local ind which keeps labor home |
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5. the negotiation of labor, safety, & envl laws which
mirror or nearly mirror those in the core nations |
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Thus, for a semi periphery & periphery nation to have a beneficial
relationship w/ a global corp, that particular relationship must be negotiated
& this negotiation inevitably takes place btwn participants w/ unequal
power |
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The econ relationships btwn semi periphery / periphery nations &
core nations can also be impacted by global trade & econ dev instits
such as the WEF, WTO, IMF, WB, APEC, EU, etc. |
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MOST MAJOR CONFLICTS IN THE MODERN ERA, EVEN THOUGH THEY
MAY APPEAR TO BE BASED ON RELIGIOUS OR ETHNIC CONFLICT, ARE OFTEN CAUSED
BY ECON CONFLICT FOR MKTS OR RAW MATERIALS |
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It is important to emphasize the centrality of econ relations in understanding
what is happening in world relations today... that many conflicts that
appear to be based on political, religious, ethnic, racial, religious,
etc. issues are probably more econ related than anything |
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Huntington, in The Clash of Civilizations & the Remaking of
World Order (1996) argues that civilization divisions are again becoming
more important after the fall of the old SU & the end of the cold war |
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Most major nations have old cultural ties w/ either the Western / Christian
civilization, Islamic civilization, Orthodox Christian, Asian / Buddhist,
Hindu to name some of the most important |
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Russia's support of the Serbs in the 90s in the old Yugoslavia despite
their atrocities against Muslims, Croatians, Albanians, & others can
be understood as at least partially a result of the Orthodox Christian
civilization ties btwn Russian & Serbs |
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It is often the case that these cultural ties are a basis for estbing
econ ties, & that econ forces are still the most important & are
becoming more imp to what happens to nations & people in the world |
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Internal
Links
Top
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Outline on Deindustrialization
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External
Links
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DEINDUSTRIALIZATION IS THE PROCESS WHEREBY INDUSTRIES ARE
PERMANENTLY LOST IN CORE NATIONS & TRANSFERRED TO SEMI - & PERIPHERAL
NATIONS TO GAIN ADVANTAGES SUCH AS LOW WAGES, LACK OF ENVL REGS, ETC. |
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Deindustrialization is the relative decline in industrial production
& employment in core regions as a result of the development of information
technology & the export of traditional industries to semi peripheral
& peripheral nations |
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Deindustrialization is a decline in the importance of heavy industry
as a source of employment |
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Deindustrialization is one part of globalization |
|
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Because of more efficient operations, lower wages, lower environmental
regulations, lower labor laws, etc. many nations produce cars, TVs, etc.
at lower cost |
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In search of lower wages, & other competitive edges, US corporations
have moved assembly operations to third world countries |
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An example of deindustrialization is seen in that thousands of
manufacturing jobs have shifted from the US to northern Mexico |
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In 1988, of the 1,400 manufacturing jobs in Mexico, near the US border,
90% were in American owned corporations |
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The closing of industrial jobs resulted in 38 mm jobs lost in the US,
which were shipped to foreign nations |
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DEINDUSTRIALIZATION IS ONLY ONE PHASE OF CREATIVE DESTRUCTION
IN THE ECONOMIC CYCLE |
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A dictum of economics is that the old economic system must be phased
out in order to build a new economy |
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The transformation of one economic base to another necessitates
destruction of old economies & ways of life & the development of
the new economy |
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Usually, such a major social change as an economic transformation is
not universally welcomed |
|
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But economic transformation must happen in the development of
any economy |
|
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An example of an economic transformation is
- ag to natural resource extraction
- natural resource extraction to manufacturing
- manufacturing to hi tech
- deindustrialization |
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Some economies develop strategies to attempt to skip stages of econ
development |
|
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The US economy shifted, or transformed, because international competition
caused a shift in the global economic structure |
|
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DEINDUSTRIALIZATION IS THE PART OF GLOBALIZATION WHERE CORPS
SHIFT PRODUCTION TO 'A MORE FAVORABLE BUSINESS ENV' |
|
| |
The global economic structure changed because |
|
| |
- the US lost its competitive edge in manufacturing to Japan,
South Korea, & Germany |
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- the US won the competition in hi tech & hi income services |
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- the US responded to its lost edge in manufacturing w/ downsizing,
lean manufacturing, deindustrialization, etc. |
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- of an increase in automation which allowed corporations to
create efficient, global enterprises |
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DEINDUSTRIALIZATION IS A BENEFIT TO THE UC WHEN THEY GAIN
WAGE & OTHER ADVANTAGES & A DEVASTATING COST TO ALL OTHER
CLASSES WHEN THEY LOOSE THEIR LIFE'S CAREER |
|
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Deindustrialization did not adversely impact the upper classes
very much because the wealthy were not rooted to manufacturing because
they could shift assets to the new economy & to foreign, US owned production |
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Deindustrialization did not adversely impact the lower classes
very much because they were not primarily dependent on manufacturing jobs
for their income |
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Deindustrialization impacted the middle & working classes
more than any other because they were dependent on manufacturing jobs as
their primary source of employment & could not easily shift to other
occupations |
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Wkrs could not easily shift to other occupations because there were
not enough other, well paying jobs, & because there was not enough
training available for displaced workers to upgrade their skills to fit
the new, high tech economy |
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The deindustrialization that began in the 1980s & continues in
the 2000s created three shifts in the middle & working classes including
the: |
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a. shrinkage of skilled blue & white collar jobs |
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b. expansion of low skilled, low pay service jobs in peripheral
industries |
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c. expansion of professional & managerial jobs in
the upper range of middle class pay structure |
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| |
DEINDUSTRIALIZATION RESULTED IN THE SHRINKAGE IN THE MIDDLE CLASS,
& GROWTH IN THE LOWER & UPPER CLASSES |
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From 1988 to 1993, the US lost 2 mm skilled & semi-skilled jobs
in manufacturing, mining & construction, & gained 1.3 mm service
jobs paying $215 per week or $10,750 per year |
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In 1993, 18% of all fully employed workers earned wages below the
poverty line, which was a 50% increase since 1979 |
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In 1994, 72% of new jobs were managerial & professional, 25% of
the workforce was mgr / prof ( 34 of 132 mm ), & 12%
of workforce was manufacturing ( 17 of 132 mm ) |
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By eliminating higher paying jobs, deindustrialization has resulted
in growing inequality & rising poverty since the late 1970s |
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DEINDUSTRIALIZATION HAS DEVASTATED CENTRAL CITIES, ESP THE
MFR CITIES IN THE MIDWEST & NORTHEAST, OFTEN CALLED THE "RUST BELT" |
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Blacks & Hispanics in the inner cities are hardest hit because
it is difficult for them to move to other areas because of costs &
segregation |
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A study by Rosenbaum & Meaden, 1993, demonstrated that when poor
Blacks in Chicago were given the chance to move to the suburbs, their employment
rose relative to those who stayed in the inner city |
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As a result of deindustrialization & job losses in the inner city,
poverty has been concentrated in these areas |
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Deindustrialization has resulted in the degradation of the inner cities |
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DEINDUSTRIALIZATION HAS PARALLELED & FOSTERED THE GROWTH OF
THE SERVICE ECON |
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| |
Manufacturing job losses have been offset by growth in jobs in the
services & administrative sectors |
|
| |
But jobs in the services & administrative sectors have not created
enough jobs to replace all of those which were lost to deindustrialization |
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Jobs in the services & administrative sectors require higher education
& so were not available to displaced workers from the manufacturing
sector |
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Jobs in the services & administrative sectors paid less & so
swelled the ranks of the working poor |
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Deindustrialization had a major, negative impact on unions &
organized Labor |
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Industrial work, the old bastions of unions have been the hardest hit |
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The union's center was in industrial blue collar jobs, which were the
jobs hardest hit by deindustrialization |
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The new sectors of the economy, the service economy, female & minority
dominated employment sectors had never been unionized |
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Unions have learned new tactics, positions to gain the support of minority,
female, & service sector workers |
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Since deindustrialization, the growth in the Labor Movement has come
from the public sector & the service sector |
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The US has lowest unionization rate of any modern, industrialized nation |
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Internal
Links
Top
|
|
Outline on Low
Wages & the Minimum Wage
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External
Links
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- Supplement: Articles
on the Living Wage Debate |
Link
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IN THE US, BUT NOT MOST OTHER CORE NATIONS, A FULL TIME
WKR MAY NOT BE ABOVE THE POVERTY LINE |
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In 2000, 12% of poor people worked full time |
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The number of of the working poor more than doubled since 1978,
because the minimum wage rarely increases at the rate of inflation |
|
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In 2001, the minimum wage was $5.15 / hr. or $10,712 / yr. |
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In 2003, the minimum wage is $5.50 / hr. or $11,440 / yr. |
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The minimum wage will does not provide a living above the poverty line
for a couple & is more than $7,000 below the poverty line for
a family of four |
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Because of low pay, many military families live below the poverty line
& are eligible for food stamps & welfare |
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The minimum wage & military pay are political footballs & therefore
they have not been raised regularly to adjust for inflation |
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In 1996, the minimum wage had only 2/3s of the purchasing power that
it did in 1968 |
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MIN WAGE PROPONENTS HOLD THAT IT COULD BE USED TO ELIMINATE
POVERTY; OPPONENTS HOLD THAT IT IS UNFAIR TO BUSINESS
& IT SLOWS JOB GROWTH |
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Opponents of the minimum wage believe that it costs small & corporate
business too much money, resulting in fewer low wage jobs, & thus ultimately
hurting the people it is supposed to help |
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Proponents of the minimum wage believe it helps the poor, should be
higher, & has little effect on the number of low wage jobs because
these jobs are rarely mechanized, businesses cannot operate w/ less of
these jobs, & the costs can generally be passed on the the customer |
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Because of deindustrialization & other changes in the economic
structure, low wage jobs were one of the fastest growing sectors of
the econ in the 1980s & 90s, & there was little growth in middle
class jobs |
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Deindustrialization, the growth of low wage jobs, & slow growth
in middle class jobs has resulted in falling incomes for the lower
& middle classes, & a lower median income |
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In 2005, real wages for US wkrs fell 1/2 %, continuing the trend of
falling wages that has characterized the 1st world wkforce since the late
1970s (except for a brief 3 yr period during the end of the Clinton Admin
when wages rose) |
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WELFARE REFORM HAS MADE IT MORE DIFFICULT FOR THE WKING
POOR TO RECEIVE ANY KIND OF AID |
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A major goal of the Welfare to Work Program is to move people
off of welfare to work, & to provide a living for them |
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The Welfare to Work Program has moved many people off of welfare, but
has not provided a living for them in that they earn wages at or below
the min wage |
|
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Welfare to Work Programs have moved many people from govt subsidies
to minimum wage jobs, w/ no health benefits or chances for advancement |
|
| |
Jobs, w/ no health benefits or chances for advancement cannot sustain
an individual or family in the long term because one cannot save for or
weather any of life's emergencies or make any of life's major purchases
such as an auto & home |
|
| |
Jobs, w/ no health benefits or chances for advancement are called dead
end jobs |
|
| |
The living wage movement is attempting to eliminate dead
end jobs by raising minimum wage to a point where one has health benefits
& the possibility of saving |
|
| |
The living wage movement is not operating at the national level trying
to get Congress to increase the minimum wage |
|
| |
The living wage movement is operating at the state, local, & the
individual enterprise level & thus small groups of dedicated individuals
are having an impact |
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Internal
Links
Top
|
|
Outline on Global
Poverty
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|
External
Links
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|
- Supplement: Beyond a
Wall of Secrecy, Devastation. The Washington Post |
Link
|
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- Supplement: Mine Labor
in Congo Dims Luster in Diamonds. The New York Times |
Link
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INTRO: THE GLOBE IS STRATIFIED AMONG CORE / RICH, SEMI PERIPHERAL
/ DEVELOPING, & PERIPHERAL / UNDEVELOPED / POOR NATIONS |
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Low income, peripheral, nations are home to some rich & many poor |
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Most people live w/ incomes of a few hundred dollars a yr |
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The burden of poverty in low income countries is greater than for the
poor of the US & other core nations |
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THE SEVERITY OF POVERTY CAN BE JUDGED ON A RELATIVE OR ABSOLUTE
SCALE |
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A key reason that quality of life differs so much around the world
is that economic productivity is lowest in precisely those regions where
population growth is highest |
|
| |
The distinction btwn absolute & relative poverty is the distinction
btwn a simple numerical scale & a comparison |
|
| |
The measure of absolute poverty examines poverty based on absolute
number or monetary level |
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|
The measure of relative poverty examines poverty in relationship to
the socio economic context of a particular society |
|
| |
Absolute poverty is a particularly serious problem in the poorest nations
in that many simply do not have enough to live on |
|
| |
Absolute poverty is more important in the global perspective |
|
| |
Some people lack resources that are taken for granted by others |
|
| |
Lack of resources that is life threatening |
|
| |
Lack the nutrition necessary for health & long term survival |
|
| |
While absolute poverty is more common in peripheral nations, it exists
in every society; rich & poor |
|
| |
Relative poverty is more salient in the more developed countries |
|
| |
People in rich nations focus on relative poverty |
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|
CORE NATIONS ARE HIGH INCOME / DEVELOPED NATIONS |
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|
Reason quality of life differs so much around the world |
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|
|
Economic productivity is lowest in regions where population growth
is the highest |
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|
High income countries have the advantage |
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|
SEMI PERIPHERAL NATIONS ARE MIDDLE INCOME, DEVELOPING NATIONS |
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|
79% of global income supporting just 18% of humanity |
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|
20% of global income support 70% of humanity |
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|
PERIPHERAL NATIONS ARE LOW INCOME, UNDEVELOPED NATIONS |
|
| |
Poverty in poor countries is more extensive than it is in rich nations
such as the US |
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|
|
12% of planet's population survives w/ 1 % of global income |
|
| |
Low econ development & low income contributes to serious problems
of hunger & starvation in these societies |
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|
|
Poverty in poor countries is more severe than it is in the rich countries |
|
|
Link
|
The Map of the Median Age at Death
demonstrates that while life span in the core nations is the highest, it
is dramatically lower in peripheral nations, demonstrating that general
econ develop directly impacts not only life chances but life span |
|
| |
In rich countries, most people die after 75 |
|
| |
In poor countries half of all deaths occur among children under age
10 |
|
| |
CHILD POVERTY IS RAMPANT IN ALL NATIONS |
|
| |
The extent & severity of child poverty is greatest in the low income
countries |
|
| |
At least 100 million children in poor countries provide income for
their families |
|
| |
The prevalence of absolute poverty means that children often beg, steal,
sell sex, or work for drug gangs |
|
| |
To survive, children often must drop out of school, which has the effect
of maintaining the cycle of poverty |
|
| |
Children are at high risk of disease & violence |
|
| |
Another 100 million children leave families to live on the streets
each yr |
|
| |
Half of all street children found in Mexico City or Rio de Janeiro |
|
| |
BECAUSE OF THE INTERSECTION OF PATRIARCHY & THE CLASS SYSTEM,
WOMEN
EXPERIENCE MUCH HIGHER RATES OF POVERTY THAN MEN |
|
| |
Feminists have labeled the trend of single parent, female headed families
having a high risk of poverty "the feminization of poverty" |
|
| |
Women in peripheral nations are at a high risk of experiencing single
parenthood & poverty, resulting in a high level of the feminization
of poverty |
|
| |
In the mid 2000s, 70 % of world's 1 billion people living in absolute
poverty are women |
|
| |
When people are under the ultimate stress of starvation, families are
likely to break down, w/ men leaving, women raising only the youngest of
children, & the rest of the children fending for themselves by living
in the street |
|
| |
Women in the poorer nations experience particularly severe poverty |
|
| |
In reich societies, women work is undervalued, underpaid, or overlooked |
|
| |
Women in peripheral nations commonly find work in sweatshops which
make products for the core nations |
|
| |
Tradition keeps women out of many jobs |
|
| |
Traditional norms give women the responsibility for child rearing &
household maintenance |
|
| |
Traditional norms give men control over 90 % of the land |
|
|
Link
|
The Bar Chart on the Use of Contraception
by Married Women of Childbearing Age demonstrates that contraception
is not uniformly available across the globe |
|
| |
Women in poor countries receive little or no reproductive health care
& limited access to birth control |
|
| |
ECONOMIC & SEXUAL SLAVERY STILL EXISTS TODAY, & IS
GROWING W/IN THE GLOBAL ECON |
|
| |
Anti Slavery International distinguishes four types of slavery: |
|
| |
a. In chattel slavery, one person owns another |
|
| |
b. Child slavery includes abandoned children or those
living on the street |
|
| |
c. Debt bondage occurs where people are paid less than
they are charged for food |
|
| |
d. Servile forms of marriage are also considered slavery |
|
| |
ON A GLOBAL SCALE, THE RICH ARE GETTING RICHER,
& THE
POOR ARE GETTING POORER |
|
| |
While the rich, core nations have competed w/ each other in the last
200 yrs, the gap btwn the rich & poor has become immense |
|
| |
The World Bank notes that:
| "As late as 1820, per capita
incomes were quite similar around the world, & very low, ranging from
around $500 in China & So Asia to $1,000 to 1,500 in the richest countries
of Europe" |
(World Bank, 2000: Chapter 3, p. 45).
|
|
| |
At the beginning of this millennium, per capital income in many core
nations was $30,500 compared to $500 in many peripheral nations such as
Sierra Leon, Tanzania, & Ethiopia |
|
| |
20 % of the world's population, i.e. over 1 bb people, live on less
than $ 1 / day |
|
| |
Almost half of the world's population, i.e. 2.8 bb live on less than
$ 2 / day |
|
| |
Despite high levels of extreme world poverty, many Americans cannot
understand the hatred fuming toward the US |
|
| |
The UN est that the number of people existing on less than $ 1 / day
has increased directly w/ globalization during the 1990s (UN: A Better
World for All, 2000) |
|
| |
The first ever est of global wealth inequality indicates that the top
2 % of people in the world own over half of all the wealth, while the bottom
50 % own less than 1 % |
|
| |
In relation to global income, the top 20 % of people receive 150 times
the income of the bottom 20 % |
|
| |
30 yrs ago, the top 20 % of people receive just 60 times the income
of the bottom 20 % |
|
| |
There are 800 mm chronically undernourished people in the world, w/
another 2 bb experiencing crucial deficiencies in nutrients |
|
| |
UNICEF reports that malnutrition is a factor in about 55 % of the 12
mm preventable deaths among children under 5 each yr |
|
| |
It has not been since the Mid Ages & the bubonic plague, i.e. the
Black Death, that any single cause has killed children at the rate that
simple poverty & malnutrition are killing children today |
|
| |
ON A GLOBAL SCALE, THE RICH ARE GETTING RICHER, BUT THE POOR
CAN GET NO POORER |
|
|
Map
of the Median Age at Death
Source: World Bank (1993), w/ updates by
Macionis
The Map of the Median Age at Death demonstrates that while
life span in the core nations is the highest, it is dramatically lower
in peripheral nations, demonstrating that general econ develop directly
impacts not only life chances but life span
|
|
Bar
Chart on the Use of Contraception by Married Women of Childbearing
Age
Source: UN Development Program (2005
The Bar Chart on the Use of Contraception by Married Women of
Childbearing Age demonstrates that contraception is not uniformly available
across the globe
|
|
|
Top
Internal
Links
|
|
Outline on International
Comparative Income Inequality / Mobility
|
|
External
Links
|
| |
DATA SHOWS THAT ON MOST INDICATORS OF INCOME, THE US
RATES BEHIND MOST INDUSTRIAL NATIONS |
|
|
Link
|
Table: Income Inequality in 15
Industrialized Countries |
|
| |
An analysis of the Income Inequality in 15 Industrialized Countries
shows that
- the US has more income inequality than other industrialized countries
- the US has the lowest amount of money going to the lowest 10 % |
|
|
Link
|
Table: Hourly Pay for Production
Workers in 13 Industrial Nations in 1999 |
|
| |
An analysis of Hourly Pay of Production Workers in 13 Industrial Nations
shows that the US ranks 9th of 13 and pays a below average wage of $19.20
which is $1.05 below the average |
|
|
Link
|
Table: Comparative Income Inequality
of Leading Industrial Nations: Shares of Pretax Household Income |
|
| |
An analysis of the Comparative Income of Leading Industrial Nations
shows that the US has the smallest share of income going to the lower 20%,
and nearly the largest share of income going to the upper 20%, resulting
in the upper 20% earning over 15 times what the lower 20% earn, with an
average of 8% for the Leading Industrial nations |
|
|
Link
|
Table: Comparative Income Inequality
in the 1990s |
|
|
|
An analysis of Table: Comparative
Income Inequality in the 1990s shows that the top 10% of people in
the US earn by far the greatest percentage of median income, while the
bottom 10% earn the smallest percentage of median income, giving the US
the highest Gini Coefficient |
|
|
|
Since the 1980s the US has had the highest level of income inequality |
|
| |
From the Table on the Comparative income inequality in the 1990s:
- the lowest levels of income inequality are found in Japan
- in the US, the highest 5th earn 12 times the mean income of
the lowest 5th
- in Japan, the highest 5th earn 4 times the mean income of the
lowest 5th |
|
|
|
The US has attained its highest level income inequality in the
1990s |
|
| |
From Table 2 - 5 Comparative Income Inequality in the 90s:
- in the US the bottom 10% earn only 36 % of our average income
- the rich earn 2.1 times the our average income |
|
|
|
Austria is in the middle of the ranking of the industrialized nations
income distribution
In Austria the bottom 10 % earn 56 % of their average income
The rich earn 1.9 times their average income |
|
|
Link
|
The Bar Chart on Income Inequality
in Selected Nations shows that the US has about double the income inequality
of other core nations & about half the income inequality of peripheral
nations |
|
| |
Many low & middle income countries have greater econ inequality
than the US |
|
| |
The US has more economic inequality than most high income nations |
|
|
Link
|
The Bar Chart on Income & Population
Shares of Core, Semi Peripheral, & Peripheral Nations shows that
the middle & low income countries, while having over 90 % of the population,
earn less than a quarter of global income |
|
| |
The relative share of income is such that for every dollar earned by
people in low income countries, people in high income countries earn $53 |
|
|
Link
|
The Table on the Wealth & Well
Being in Global Perspective demonstrates that the quality of life generally
parallels per capita income |
|
|
Link
|
Table: Comparative Employee &
Executive Incomes, 1992 |
|
|
|
An analysis of Table: Comparative Employee & Executive
Incomes, 1992, shows that US CEOs earn more than any others, and American
workers earn less than any other workers except the British |
|
| |
US workers are paid less than all workers except British
workers |
|
| |
US White Collar Workers & Mgrs are paid 3rd in the G 7 |
|
| |
American CEOs are paid at the highest rate in the G 7; over
twice the rate of the bottom, the Japanese; & over 10 % higher than
2nd place, France |
|
| |
The gap btwn the Top & Bottom workers is the highest in
America & lowest in Germany |
|
|
Link
|
Table: Comparative Top Corp Exec
Salaries, 1997 |
|
| |
An analysis of Table: Comparative Top Corp Exec Salaries,
1997 shows that most nation's top executives earn half, or less,
of what American executive earn |
|
| |
US corp executives earn almost double that of other industrial nation's
executive
US executives earn almost 3 times that of Japanese executives |
|
| |
THE US HAS GREATER INEQUALITY
OF INCOME & WEALTH, BUT ALSO HAS SLIGHTLY GREATER SOCIAL
MOBILITY |
|
| |
In general, there is little different in the amount of
mobility among modern, class societies |
|
| |
Among modern, class societies, mobility from low statuses to high statuses
is the exception rather than the rule |
|
| |
Among modern, class societies, movement within the middle classes is
more common |
|
| |
A slightly greater percentage of people in the US move from manufacturing
to the professions than in other industrialized countries |
|
| |
The slightly greater social mobility in the US reflects slightly higher
structural mobility owing to white collar job growth, rather than high
exchange mobility (i.e., the upward social movement of people compared
to their parents) |
|
| |
Great Britain & Brazil have the least social mobility among industrialized
nations |
|
| |
The US & Japan have similar rates of social mobility, but different
measures of mobility yield different results |
|
| |
Poland, Hungary, and the US have similar mobility |
|
| |
The US & Canada, compared to Sweden & Norway, have slightly
more mobility in occupational status, but much less mobility in terms of
gaining business ownership |
|
| |
Thus, the US has only slightly greater social mobility than other industrialized
nations |
|
| |
Yet, because of the US culture & its embodiment of the Horatio
Alger Myth, & "the land of milk & honey," "streets paved w/ gold"
etc., people remain relatively satisfied w/ current policies, refusing
to support tax policies that redistribute more wealth or policies to reduce
poverty |
|
| |
CONCLUSION: WHILE IN THE 60s THE US HAD AVERAGE INEQUALITY
OF WEALTH & INCOME, TODAY THE US HAS HIGHER INEQUALITY |
|
| |
During the 1960s:
- the US was ranked midway in income inequality compared to other
industrial nations
- France had the highest inequality income inequality
- Germany, England & Australia had the lowest inequality |
|
| |
As can be seen by the tables & figures on income inequality presented
here, the US is now ranked as having among the highest levels of income
inequality of the industrial nations |
|
|
Link
|
The Bar Chart on the World's Increasing
Economic Inequality demonstrates that the gap btwn the richest &
poorest people in the world is twice as big as it was a century ago |
|
|
|
See Also: Ideology, Class & False Consciousness |
|
|
|
Horatio Alger Myth |
|
Table: Income Inequality
in 15 Industrialized Countries
IS 09
|
| Country & Year |
% of Income
Received by
Lowest 20 % homes
|
% of Income
Received by
Highest 10 % homes
|
Ratio of
Highest 10 %
to Lowest 10 %
|
| United Kingdom, 1988 |
4.6
|
25.3%
|
6.0
|
| Switzerland, 1982 |
5.2
|
29.8
|
5.7
|
| US, 1985 |
4.7
|
25.0
|
5.3
|
| France, 1989 |
5.6
|
26.1
|
4.7
|
| Italy, 1986 |
6.8
|
25.3
|
4.4
|
| Canada, 1987 |
5.7
|
24.1
|
4.2
|
| Denmark, 1981 |
5.4
|
22.3
|
4.1
|
| Germany, 1988 |
7.0
|
24.4
|
3.5
|
| Finland, 1981 |
6.3
|
21.7
|
3.4
|
| Norway, 1979 |
6.2
|
21.2
|
3.4
|
| Netherlands, 1988 |
2.7
|
21.9
|
2.7
|
| Belgium, 1978-1979 |
7.9
|
21.5
|
2.7
|
| Spain, 1988 |
8.3
|
21.8
|
2.6
|
| Japan, 1979 |
8.7
|
22.4
|
2.6
|
| Sweden, 1981 |
8.0
|
20.8
|
2.6
|
| Average |
6.6
|
23.1
|
3.6
|
An
analysis of the Income Inequality in 15 Industrialized Countries shows
that
- the US has more income inequality
than other industrialized countries
- the US has the lowest amount of money
going to the lowest 10 %
|
Table: Hourly Pay for Production
Workers
in 13 Industrial Nations in 1999
Kerbo 0502
|
| Nation |
Hourly Wages
|
| Spain |
$ 12.11
|
| Canada |
15.60
|
| Great Britain |
16.56
|
| France |
17.98
|
| United States |
19.20
|
| Japan |
20.89
|
| Netherlands |
20.94
|
| Sweden |
21.58
|
| Austria |
21.83
|
| Denmark |
22.96
|
| Switzerland |
23.56
|
| Norway |
23.91
|
| Germany |
26.18
|
| Average |
20.25
|
An
analysis of Hourly Pay of Production Workers in 13 Industrial Nations shows
that the US ranks 9th of 13 & pays $19.20 which is $1.05 below the
average
|
Table: Comparative Income
Inequality of Leading Industrial Nations:
Shares of Pretax Household Income, 1986
Kerbo 0402
|
| Nation |
Highest 20%
|
Lowest 20 %
|
Ratio
|
| US |
46
|
3
|
15.3
|
| France |
47
|
7
|
6.7
|
| Britain |
46
|
6
|
7.7
|
| Canada |
41
|
5
|
10.2
|
| West Germany |
38
|
5
|
7.6
|
| Sweden |
37
|
4
|
9.3
|
| Netherlands |
37
|
6
|
6.2
|
| Japan |
36
|
8
|
4.5
|
| Average |
41
|
5.5
|
8.4
|
An
analysis of the Comparative Income of Leading Industrial Nations shows
that
- the US has the smallest share of income going to the lower
20%,
- & nearly the largest share of income going to the upper
20%,
- resulting in the upper 20% earning over 15 times what the lower
20% earn,
- w/ an average of 8% for the Leading Industrial nations
|
Table:
Comparative
Income Inequality in the 1990s
|
|
Country
|
% of median
of bottom 10 %
|
% of median
of top 10 %
|
Ratio of top 10%
to bottom 10%
|
Gini coefficient
|
| US |
36 %
|
208 %
|
5.78
|
.343
|
| UK |
44
|
206
|
4.67
|
.335
|
| Japan |
46
|
192
|
4.17
|
.315
|
| Australia |
45
|
187
|
4.3
|
.308
|
| Canada |
47
|
183
|
3.90
|
.285
|
| Austria |
56
|
187
|
3.34
|
NA
|
| Germany |
54
|
172
|
3.21
|
.261
|
| Italy |
56
|
176
|
3.14
|
.255
|
| Netherlands |
57
|
173
|
3.05
|
.249
|
| Sweden |
57
|
159
|
2.78
|
.229
|
| Red numbers signify
the highest level of the category |
An
analysis of Table: Comparative Income Inequality in the 1990s
shows that the top 10% of people in the US earn by far the greatest percentage
of median income, while the bottom 10% earn the smallest percentage of
median income, giving the US the highest Gini Coefficient
|
Bar
Chart on Income Inequality in Selected Nations
Sources: U.S. Census Bureau (2005) and World
Bank (2006)
The Bar Chart on Income Inequality in Selected Nations shows
that the US has about double the income inequality of other core nations
& about half the income inequality of peripheral nations
|
Bar
Chart on Income & Population Shares of Core, Semi Peripheral,
& Peripheral Nations
Sources: Calculated by the author based
on UN Development Program (2000) and World Bank (2001)
The Bar Chart on Income & Population Shares of Core, Semi
Peripheral, & Peripheral Nations shows that the middle & low
income countries, while having over 90 % of the population, earn less than
a quarter of global income
|
Table:
Comparative
Employee & Executive Incomes, 1992
|
Manufacturing
Employees
|
White Collar
Employees
|
Managers
|
CEOs
|
Germany
$ 36,857
|
Britain
74,761
|
Italy
219,573
|
US
717,237
|
Canada
34,939
|
France
62,279
|
France
190,354
|
France
479,772
|
Japan
34,263
|
Germany
59,916
|
Japan
185,437
|
Italy
439,441
|
Italy
31,537
|
Italy
58,263
|
Britain
162,190
|
Britain
439,441
|
France
30,019
|
US
57,675
|
US
159,575
|
Canada
416,066
|
US
27,606
|
Canada
47,231
|
Germany
145,627
|
Germany
390,933
|
Britain
26,084
|
Japan
40,990
|
Canada
132,877
|
Japan
390,723
|
An
analysis of Table: Comparative Employee & Executive Incomes,
1992 shows that US CEOs earn more than any others, & Am wkrs earn
less than any other wkrs except the British
|
Table:
Comparative Top Corp Exec Salaries, 1997
|
| Country |
Salary
|
% of US Salary
|
| US |
901,200
|
100 %
|
| Australia |
476,700
|
52.9
|
| Belgium |
470,700
|
52.2
|
| Canada |
440,900
|
48.9
|
| France |
523,500
|
58.1
|
| Germany |
423,900
|
47.0
|
| Italy |
450,300
|
50.0
|
| Japan |
397,700
|
44.1
|
| Netherlands |
442,900
|
49.1
|
| Spain |
333,600
|
37.0
|
| Sweden |
340,700
|
37.8
|
| Switzerland |
465,200
|
51.6
|
| UK |
489,700
|
54.3
|
An
analysis of Comparative Top Corp Exec Salaries, 1997 shows
that most nation's top executives earn half, or less, of what American
executive earn
|
Bar
Chart on the World's Increasing Economic Inequality
Source: International Monetary Fund (2000)
The Bar Chart on the World's Increasing Economic Inequality
demonstrates that the gap btwn the richest & poorest people in the
world is twice as big as it was a century ago
|
|
Internal
Links
Top
|
|
Outline on Stagnation,
Globalization, & the New World Order
|
|
External
Links
|
|
|
INDUSTRIES IN THE CORE HAVE STAGNATED OR DECLINED
DUE TO THE INTL COMPETITION OF GLOBALIZATION; BUT NEW ECON SECTORS
HAVE GROWN, E.G. HI TECH & SERVICES |
|
| |
Many mfr industries in No Am & in other industrialized nations
have stagnated in recent decades |
|
| |
One reason for the stagnated mfr industry is because of increased international
competition |
|
| |
International competition has increased because of the natural cycle
of capitalism & because of the greenfield advantages of
the post WW2 nations & the newly industrialized semi peripheral nations |
|
| |
After WW2, European & Japanese firms rebuilt new, "greenfield"
factories in the 1950s & 60s |
|
| |
By the 1970s, the greenfield factories of Europe & Japan were online
& increasing the competition for Am firms |
|
| |
The peripheral & semi peripheral, 3rd world nations are
pursuing the path of industrialization |
|
| |
Some nations have had only limited success, while others such as Mexico,
Taiwan, So Korea, & Brazil have won mkt share |
|
| |
The newly industrialized nations are suffering the same decimating
effects of early industrialization as did the nations of the first
wave of the industrial revolution including Europe, the US, & Japan |
|
| |
Today the newly industrialized nations have horrible worker
injury rates, unregulated working hours & conditions, & uncontrolled
pollution |
|
|
Link
|
The Table on Decline of US Mfr Workforce
& Increase of US Overseas Production demonstrates that the US lost
over 1/3 of a million mfr jobs in the 1980s |
|
| |
THE TRANSFORMATION OF THE ECON FROM INDUSTRY TO HI TECH &
SERVICE HAS RESULTED IN LOWER WAGES & LESS JOB SECURITY |
|
|
|
Since the onset of globalization, real income for the average Am
has decreased as costs to local communities has increased in the wake
of large scale layoffs & plant closings (Edwards, 1993) |
|
|
|
Since the onset of globalization, new jobs that are created
in the service sector pay less than the jobs lost in mfr & other
high paying sectors |
|
|
|
In March of 2004, after months of low wage growth, averaging less than
100 K new jobs / mo., 308 K new jobs are created, but none in the higher
wage mfr sector |
|
| |
Many lost mfr jobs are replace by employment growth in smaller firms;
however, many of these new jobs have a short life span |
|
| |
Growth in the small firm sector has been produced by start ups of subsidiaries
of large corps in the process of seeking out locations w/ cheaper
labor costs (Vallas, 2001) |
|
| |
The growth of the service sector has also provided new jobs, but these
generally pay much less than jobs in mfr & contribute to the nation's
income |
|
| |
Displaced auto workers lose an average of 44% of their previous
income in the 2 yrs after their layoff & workers in steel, meat packing,
& aerospace report similar losses |
|
| |
See Also: The Declining Middle Class |
|
|
|
Under globalization, the downward pressure on wages & benefits,
i.e. give backs, are accompanied by attacks on Social Security,
education & other social programs secured by the middle- & working
classes during the post WW 2 boom years (Levine, 1995) |
|
| |
Give backs create a two tiered wage structures where new workers
work under a lower wage & benefits scale |
|
| |
NEGATIVE EFFECTS OF DEINDUSTRIALIZATION FOR THE CORE
ARE: CLOSED BUSINESSES, LOW WAGES, LESS JOB SECURITY,
DECLINE OF THE
INNER CITIES & 'RUST BELT' REGION, DECLINE
OF ORGANIZED
LABOR, & SHRINKAGE OF THE MC, ETC. |
|
| |
See Also: The Effects of Globalization |
|
| |
For the core, negative effects as a result of the deindustrialization,
which is caused by globalization, include: |
|
| |
1. businesses have closed & sometimes, entire industries
have shut down |
|
| |
2. wages have declined in the core nations
since the 70s |
|
| |
3. wkrs have lost job security in that there are
more temp jobs & fewer full time jobs are expected to be permanent
/ careers |
|
| |
4. closed businesses, low wages, & temp work have
decimated
the inner cities resulting the |
|
| |
5. closed businesses, low wages, temp work, & the
decline of cities have resulted in entire regions, esp the rust
belt of the NE, being decimated |
|
| |
6. organized Labor has declined to less than half
its former membership because of the decline of industries which were traditionally
unionized |
|
| |
7. overall, the MC has shrunk, generally moving
people downward, as a result of all the negative factors of deindustrialization:
closed businesses, declining wages, loss of job security, the decline of
inner cities, & the decline of entire regions like the rust belt |
|
| |
NEGATIVE EFFECTS OF INDUSTRIALIZATION FOR THE
SEMI
PERIPHERY & THE PERIPHERY INCLUDE SWEATSHOP LABOR CONDITIONS,
LACK OF / LOW TAXES & ROYALTIES, POLLUTION,
UNPLANNED
ECON DEV, DISPLACEMENT, LOSS OF TRADL ECONS, ETC. |
|
| |
For the semi periphery & the periphery, negative effects
as a result of the deindustrialization, which is caused by globalization,
include: |
|
| |
1. sweatshop labor conditions such as poverty wages,
child labor, unsafe conditions, unregulated hazardous materials, forced
labor, abusive supervision, no unions, no benefits, no pensions, etc. |
|
| |
2. corps operating in a host country w/o returning any
benefit to that country in the form of taxes, royalties, infrastructure,
etc. |
|
| |
3. non existent envl laws which is resulting in
rampant pollution & the creation of haz mat dumping grounds |
|
| |
4. unplanned econ dev whereby shanty towns & indl
waste lands co exist |
|
| |
5. industrialization / modernization often allows corps
& govts to 'buy' or take land by eminent domain, thus displacing
peasant pops that had lived on the land for gens |
|
| |
6. that when people leave their tradl lives to work in
the factories, the tradl econs which had supported them declines
& then collapses |
|
| |
Because of the cyclic nature of industry, eventually there are econ
downturns / busts, & because the dev of ind eliminated tradl econ of
ag, hunting, gathering, crafts, etc., the people often have no econ w/
which to sustain themselves |
|
| |
POSITIVE EFFECTS OF DEINDUSTRIALIZATION FOR THE CORE
INCLUDE RECORD PROFITS FOR CORPS & STKHLDRS, CHEAPER PRODUCTS,
TRANS TO NON POLLUTING ECON, THE CREATION OF A GLOBAL ECON &
CULTURE, ETC. |
|
| |
For the core, positive effects as a result of the deindustrialization,
which is caused by globalization, include: |
|
| |
1. corps have experienced record profits &
the stk mkt has soared, which mostly benefited the UC & the UMC |
|
| |
2. many consumer products are cheaper, & there
is also a wider variety |
|
| |
3. while tradl heavy, polluting industries have declined,
new, hi tech & services businesses, which generally do not
pollute, have grown |
|
| |
4. both the global econ & culture have grown
which may have indirect positive effects such as greater understanding,
less conflict, more opportunity, more variety, etc. |
|
| |
POSITIVE EFFECTS OF INDUSTRIALIZATION FOR THE SEMI PERIPHERY
& THE PERIPHERY INCLUDE: JOBS, ECON DEV, CONSUMER
PRODUCTS,
ED,
GENERAL MODERNIZATION, ETC. |
|
| |
For the semi periphery & the periphery, positive effects
as a result of the deindustrialization, which is caused by globalization,
include: |
|
| |
1. the creation of jobs w/ wages; many in the semi
periphery & the periphery have only produced for a subsistence econ,
but w/ the dev of ind there is at least the possibility of getting ahead |
|
| |
2. econ dev, the dev of a modern econ transitioning
out of hunter gatherer & ag econ to a mod, ind econ |
|
| |
3. the opportunity to buy mod consumer products
including TV, healthcare, 'modern food,' mod clothes, etc. |
|
| |
4. jobs, a tax base, econ dev, etc. all create the possibility
of a society developing an edl system for its youth & young
adults |
|
| |
5. all the benefits of modernization including
jobs, products, etc. as well as the mod way of thinking, the mod lifestyle,
etc. |
|
| |
The positive effects of industrialization for the semi periphery &
the periphery are realized only when the govt of the host nation &
the corps intentionally plan / design for positive effects, otherwise the
negative effects may predominate |
|
| |
Some semi periphery & the periphery nations have successfully implemented
policies that allow the benefits of ind to be realized, but many have not |
|
| |
The govts of semi periphery & the periphery nations sometimes have
a problem w/ corruption resulting in the elites of the semi periphery &
the periphery nations realizing profits while the people are exploited |
|
|
Table
on Decline of US Mfr Workforce & Increase of US Overseas Production
HS 0208
|
| Company |
1980 employment
|
1993 employment
|
Jobs Lost
|
Jobs Moved Overseas
|
| GM |
517
|
360
|
157
|
|
| GE |
402
|
268
|
134
|
5 in the 70s
|
| IBM |
335
|
301
|
34
|
|
| Ford |
123
|
89
|
40
|
|
| Westinghouse |
123
|
89
|
34
|
|
| Boeing |
109
|
133
|
+24
|
|
| Chrysler |
77
|
92
|
+15
|
|
| Caterpillar |
62
|
37
|
25
|
|
| Amoco |
45
|
35
|
10
|
|
| RCA |
|
|
14
|
5
|
| |
All figures in thousands
|
|
395 net job loss
|
|
| The Table on Decline of US Mfr Workforce
& Increase of US Overseas Production demonstrates that the US
lost over 1/3 of a million mfr jobs in the 1980s |
|
Internal
Links
Top
|
|
Outline on the
Global Corporate Class
|
|
External
Links
|
|
|
THE GUC & GCC ARE EMERGING AS DOMINANT SOC CLASSES
BUT PROBABLY HAVE NOT SURPASSED NATL UCs YET |
|
|
|
The existence of a world economic system ( WES ), i.e. a globalized
economy implies the existence of a global elite consisting of a global
upper class ( GUC ) & a global corporate class ( GCC ) |
|
|
|
It is obvious to most that global conflicts have existed for centuries
& continue to exist today, but what is less obvious is that particular
groups / classes have global interests, global social problems,
& even global values & global goals, as opposed to imposing natl
interests on a global level |
|
|
|
In many ways there is merely a developing or emerging GUC, GCC, global
conflicts, interests, problems, values, & goals |
|
|
|
Interests of the GCC include maintenance & growth of trade, minimizing
restrictions on investments & profits, ensuring the supply of cheap
labor & materials, maintaining currency values, a reliable financial
system, esp banking & stock mkts, & more |
|
| |
BECAUSE THE TOP CORPS HAVE MORE ECON POWER THAN MOST NATIONS,
THEY ARE DEVELOPING ELABORATE GLOBAL CORP STRUCTURES |
|
|
|
Because of corp mergers & the shear growth of corps to sizes surpassing
that of most nations there is an emerging interconnected corp structure
capable of the development of a GCC which has the power to watch over &
maintain intl capitalism |
|
| |
The largest 25 corps have more econ power than 170 of 200 nations |
|
| |
See Also: The Table on a Comparison
of Corporations' & Nations' Income, 2005 |
Link
|
|
|
SOC PROBLEMS HAVE GLOBAL DIMENSIONS; E.G. WAR, IMMIGRATION,
FAMINE, POVERTY, DISEASE, TRADE IMBALANCES, GLOBAL WARMING, ETC. |
|
|
|
Soc probs from poverty to destruction of the env are now global problems
w/ global causes, & only global solutions |
|
|
|
It is obvious how all major wars touch enough natl interests so that
they have a global impact & require global solutions |
|
| |
Often the global dimensions of such problems as famine & poverty
are mystified or unknown to those in the core |
|
| |
- Video: Famine Foretold
5:16 |
Link
|
| |
- Project:
Video: Famine Foretold |
Link
|
| |
THE GCC & THE GUC HAVE THE CLASS QUALS OF UNITY, INSTITS,
& BALANCE OF POWER, BUT CLEARLY, LESS OF THESE QUALS THAN NATL
CLASSES |
|
|
|
From Mills & Domhoff, domestic or national CC possessed the quals
of: |
|
|
|
a. unity among members on a number of dimensions including
their quals, interests, values, goals, etc. |
|
|
|
b. instits estbed to maintain its power & control |
|
|
|
c. the balance of power btwn a CC & the classes below |
|
| |
GCC & GUC UNITY IS WEAKER THAN NATL UNITY BECAUSE
OF LESS COMMON SOCIALIZATION & THE STRENGTH OF NATL VALUES |
|
|
|
In relation to the unity of the CC, people are said to have class
unity when they have sufficient interaction to create enough unity
for them to identify their common interests, & work toward maintaining
those interests |
|
|
|
It is difficult to measure how much unity is necessary for a class
to maintain its power in light of the the strength of class instits &
the balance of power w/ other classes |
|
|
|
Problems of estbing & maintaining GCC are greater than these for
the natl UCs & CCs because of the additional barriers of culture, values,
natl identities & loyalties, etc. |
|
| |
The GCC of the US, Euros, & Japanese ar less likely to have
the common socialization compared to the natl UCs & CCs |
|
| |
However, global corps such as BP - Amoco, & Daimler - Chrysler
have shown that, because of different mgt strats, cultural values, interests,
goals, etc., it is difficult to estb successful global mergers, &
at best there has been a demonstration of global corp takeovers |
|
| |
There are numerous reports of bitter disagreements among execs of
merged global corps over how work should be organized, exec compensation,
wkr participation in decision making, wkr pay & benefits, careers vs.
temp work, etc. |
|
| |
US corp execs are by far the highest paid in the world,
averaging over $ 1 mm in salary & $10 mm in stock options, while Germ
corp execs earn $ .5 mm in salary w/ no stock options |
|
| |
Many corp execs still think of themselves as Am, Germ, Jap, Brit,
etc. & while they may not have overt feelings of wanting their
nation to succeed over other nations, they still act & manage in line
w/ their nationality |
|
| |
The only global mergers that have had much success is btwn the very
similar nations of the US & the UK |
|
| |
THERE ARE MANY GLOBAL INSTITS EMERGING WHICH GAIN POWER EACH
YR, SUCH AS THE WTO, WB, IMF, EU, ETC., BUT THERE IS SOMEWHAT OF A BALANCE
OF POWER BTWN GLOBAL & NATL INTERESTS |
|
|
|
The focus on class instit demonstrates that individuals, even
those most powerful individuals in the world, cannot maintain power w/o
bureaucratic orgs or instits that can protect & carry out the common
class interests |
|
|
|
For domestic CCs, their class orgs & instits include the corps
they control, cross corp assocs that coordinate the pol & other activities
of the UC in order to protect their interests, & govt instits that
the CC can control / influence |
|
| |
Because studies of interlocking directorates & other corp alliances
are so infrequent, it is difficult to tell the extent of global interlocking
directorates |
|
|
|
The GUC is developing sufficient institl support ot protect its common
intl interests, including: |
|
| |
- the World Economic Forum (WEF) |
|
| |
- the World Trade Organization (WTO) |
|
|
|
- the Intl Monetary Fund (IMF) |
|
|
|
- the World Bank (WB) |
|
|
|
- the Asia Pacific Econ Cooperation (APEC) |
|
|
|
- the European Union (EU) |
|
|
|
It is commonplace to debate, even w/in these instit themselves, whether
they are serving natl or global interest |
|
|
|
While the global instits bring a GCC bring people together for
socialization, discussion, & possible consensus building, it is difficult
to say that a GCC has the unity to direct the global econ through these
instits |
|
|
|
Foe Kerbo, the GUC is dominated by the US CC because the US CC controls
the global instits |
|
| |
THERE IS NO BALANCE OF POWER BTWN THE GCC & LOWER CLASSES
BECAUSE THERE IS NO GLOBAL MC OR LC BECAUSE THEY HAVE NO GLOBAL
MC UNITY & NO GLOBAL MC INSTITS OTHER THAN A FEW SOC
MVMTS |
|
| |
Domhoff & others often examine the balance of power btwn a CC &
other classes, but little has been written about the relationship btwn
the GCC, the CCs of other nations, & the lower classes |
|
| |
There has been a sharp decline in US MC & WC influence in
the second half of the 20th C, & while the MC & WC of other
core nations have also lost influence, their decline in power has not
been so significant |
|
| |
During the second half of the 20th C, the US CC & the CCs of
other nations have proportionally grown in power |
|
| |
There is little or no balance of power btwn the GCC & any lower
classes in non existent largely because there is no global lower
class unity, there are no global lower class instits, as well
as because of the growth of power of natl CCs & the parallel decline
in the natl lower class' power |
|
| |
Some soc mvmts & non govtl orgs (NGOs) have arisen as actors
on the global stage, but their power is only proportional to how
much they can rally the MC of core nations |
|
| |
A BALANCE TO THE POWER OF THE GCC MAY BE EMERGING,
& MAY EXIST IN THE FORM OF NATL CCs |
|
| |
Like natl level CCs, the GCC is fraught w/ conflicts, competition,
grudges, biases, etc. & so neither natl level CCs nor the GCC can functions
as a pure unified whole |
|
| |
Domhoff & others posit a class dialectical model of power
where opposition will always arise to confront a dominant power,
but in the case of the GCC, it seems that the opposition, or balance
of power comes more from natl CCs that from any form of natl or global
MCs
or WCs |
|
| |
One must not assume that a GCC can rule unopposed or that its
decisions can never be countered |
|
| |
The GCC is also in conflict w/ other interests in the world, particularly
w/ the people in periphery nations |
|
| |
A few nations have been able to protect the interests of their people
against the demands from multi nat corps |
|
| |
World poverty is growing, but this is mostly so in some world
regions rather that others |
|
| |
THE STRONGEST CASE FOR THE EXISTENCE
OF THE GCC IS THAT THEY HAVE LITTLE NATL LOYALTY, THEY ARE AFFECTING
POLITICS & EVEN LIFESTYLES, ETC., CORPS ARE SUPERSEDING NATL
POWER, CROSS CORP POSITIONS ARE COMMONPLACE, EACH MERGER
CREATES MORE UNITY, & GLOBAL INSTITS ARE COMMONPLACE |
|
| |
Robinson & Harris (2000) maintain that a GCC has emerged
w/o
loyalties to any particular nation |
|
| |
The nation state is now of less significant than global corps in
shaping / controlling world events from the econ to politics, lifestyles,
wars, etc. |
|
| |
The GUC formation "represents the transition from the nation state
phase to a new transnational phase of capitalism" (Robinson & Harris,
2000) |
|
| |
Global power encompasses econ & relation soc, pol, & cultural
processes, including class formation that supersedes nation states |
|
| |
The richest & most power of the world, mostly from the core nation,
interact w/ each other, share cross corp positions, & thus are
developing enough unity to call them a GUC |
|
| |
Unity is furthered by the large increase in mergers btwn big
corps from different nations creating more common interests & class
unity |
|
| |
Even skeptics admit that a GCC does exist, but it is more in the stage
of emergence than at maturity |
|
| |
THE MILITARY INDUSTRIAL CONGRESSIONAL EXECUTIVE COMPLEX
( MICEC ) EXHIBITS SOCIAL FORCES BOTH FOR & AGAINST A GCC |
|
| |
It is clear that MICEC has interests which enhance the
chances for defense, arms races, conflict, & war, but it is less clear
whether these forces align to form / support a global MICEC or GCC or whether
natl interests in these instits predominate |
|
| |
Defense & war is big business, but the interests of global trade
& business generally align against defense & war because they limit
& decimate free trade & business |
|
| |
Many analysts of democracy & freedom note that global trade &
business may be the best strategy for ending war because trading partners
are often reluctant to fight when they can trade |
|
| |
But WW 1 & 2 were among competing capitalist nations who all wanted
to control mkts & sources of raw mats |
|
| |
Conflicts since that time have among nations w/ fundamentally different
world views as in the Cold War where the struggles were btwn capitalist
& totalitarian regimes, & more recently btwn capitalist & tradl,
radical, religious totalitarian regimes |
|
|
Internal
Links
Top
|
|
Outline on the
International Monetary Fund (IMF)
|
|
External
Links
|
| |
- See Also: The IMF
http://www.imf.org/external/index.htm |
Link
|
| |
- Supplement: About the
IMF |
Link
|
| |
- Supplement: What Is the
International Monetary Fund? |
Link
|
| |
- Supplement: IMF Member,
Quotas, Governors, & Voting Power General Department & Special
Drawing Rights Dept |
Link
|
| |
- Supplement: IMF Organization
Chart |
Link
|
| |
- Supplement: IMF Photos |
Link
|
|
|
- Supplement: IMF at a
Glance |
Link
|
| |
- Supplement: IMF:
How We Lend |
Link
|
| |
- Supplement: IMF:
Executive Board Selects Horst Köhler as IMF Managing Director, March
23, 2000 |
Link
|
|
|
THE IMF LENDS MONEY TO THE SEMI PERIPHERY & PERIPHERY
TO PREVENT ECON COLLAPSE, BUT THEY ARE OFTEN EXPLOITATIVE DEALS |
|
|
|
The IMF & the WB grew out of what were called the Bretton Woods
talks in 1944 after WW 2 |
|
| |
The idea of the IMF & the WB was to organize the world econ
to prevent world depressions as occurred during the 30s |
|
| |
The function of the IMF is to be the banker of crisis in the world,
lending money to nations in econ trouble to keep them from sliding
into collapse that would hurt other nations & the world econ |
|
| |
The IMF & the WB are not democratic orgs |
|
| |
Since the founding of the IMF & the WB after WW 2 there has been
a "gentleman's agreement" btwn the US & Euro corp class that the WB
will always be headed by an Am while the IMF will be headed by a Euro |
|
| |
Behind the scenes meetings are carried out, w/ power plays & demands
made by Eros & Am corp leaders |
|
| |
Japan, the world's second largest econ, is completely left
out, as is Russia, China, & all other nations |
|
| |
Thus, the IMF & the WB are controlled by the US & Euro corp
classes, & to a lessor degree, their pol leaders |
|
| |
Many believe the US dominates even the Euros because even the Euros
needed the approval of the US for their appointee to lead the IMF |
|
Internal
Links
Top
|
|
External
Links
|
| |
- Project: Free
Trade, NAFTA, Protectionism |
Link
|
| |
- See Also: USDA Foreign Agricultural Service (FAS): NAFTA
http://www.fas.usda.gov/itp/Policy/nafta/nafta.asp |
Link
|
| |
NAFTA HAS OPENED UP TRADE IN NO AM, BUT THERE IS WIDESPREAD
DISAGREEMENT ON THE COSTS & BENEFITS TO THE US, MEX, & CANADA |
|
|
|
NAFTA is an acronym for the North
American
Free
Trade
Agreement |
|
|
|
NAFTA was ratified by Canada, Mexico & the US in 1993 & went
into effect in early 1994 |
|
| |
NAFTA unites Canada, Mexico, & the US in one of the world's largest
free trade zones |
|
| |
NAFTA builds on a free trade agreement btwn the US & Canada that
became effective in 1989 |
|
| |
Under NAFTA, tariffs on most goods produced & sold in No Am are
to be gradually eliminated over 10 years |
|
| |
Trade of a few additional products will continue to be restricted for
another 5 years. The first reductions took place in 1994 |
|
| |
NAFTA also establishes rights & obligations regarding trade in
services, intellectual property, & intl investment |
|
| |
The provisions of NAFTA could serve as models for future global &
regional trade agreements |
|
| |
NAFTA's GOALS WERE TO LIBERALIZE TRADE, REDUCE TARIFFS,
& ELIMINATE TRADE BARRIERS |
|
|
|
NAFTA attempted to: |
|
|
|
a. remove trade barriers |
|
|
|
b. reduce & eliminate many tariffs |
|
|
|
c. eliminate other barriers such as inspections,
etc. |
|
| |
NAFTA's BENEFITS INCLUDE LOWER PRICES, INCREASED DEMAND,
& LOWER LABOR COSTS |
|
|
|
The benefits of NAFTA include: |
|
|
|
a. all countries see lower prices for goods &
services because they can now buy the cheapest product from which-ever
country |
|
|
|
b. the producing countries should see more demand |
|
|
|
c. competition puts more pressure on producers, labor
& wages |
|
| |
NAFTA made it easier for US corps to relocate plants to Mexico |
|
| |
NAFTA supporters: |
|
| |
- believe that the US, Canada, & Mexico would all benefit
from increased trade & larger markets |
|
| |
- maintain that those plants would move there regardless of
how difficult it was, & that NAFTA would create other jobs in the US
by opening Mexican & Canadian markets |
|
| |
- argued that the Clinton administration had gotten improved envl
protection in Mexico, while NAFTA opponents argued that the controls
were weak & ineffective |
|
|
|
THE POLITICAL ALLIES WHICH PASSED NAFTA CONSISTED OF AN UNLIKELY
COALITION OF FREE TRADER CLINTONITES & REAGAN REPUBLICANS,
& WAS OPPOSED BY LIBERTARIAN REPUBLICANS & LABOR
UNION DEMOCRATS |
|
|
|
NAFTA was proposed by Bush Sr. during his 1988-1992 administration |
|
|
|
NAFTA became a big campaign issue for 1992 election |
|
|
|
Bush & Clinton supported it |
|
|
|
Perot opposed it |
|
|
|
Labor strongly opposed NAFTA & campaigned against President
Bush, Sr. |
|
|
|
When Clinton was elected in 1992, his support of NAFTA was a major
wedge btwn the President & Labor |
|
|
|
Labor points out that whatever the advantages, NAFTA has negative
points that should not be overlooked |
|
| |
NAFTA generated extensive opposition in the US because of concerns
that it would result in a loss of US jobs |
|
| |
Opponents feared the job losses would result from increased Mexican
imports & from a shift in US production to Mexican plants |
|
| |
Environmental groups feared NAFTA would increase air & water pollution,
particularly in the US Mexican border region |
|
| |
THE WEAKNESSES OF NAFTA ARE IT CAN ELIMINATE JOBS
IN ONE NATION, IT HAS NO WKRS RIGHTS FOR MEX, JOBS ARE SHIFTED TO
LOW
WAGE NATIONS, NO ENVL SAFEGUARDS, DISPUTES OVER GOVT SUBSIDIES,
SWEATSHOP
CONDITIONS IN SOME NATIONS, WEAK WKPLACE SAFETY |
|
|
|
For Labor, the weaknesses of NAFTA include that |
|
|
|
a. there are not enough employment safeguards |
|
|
|
b. Mexican workers are exploited; for example they
have no minimum wage & no OSHA |
|
|
|
c. Mexican wages are not a 'living wage' even in
Mexico |
|
|
|
Mexican wages are 12.5% of US wages |
|
|
|
Canadian wages are 7.5% above US wages |
|
|
|
d. there are not enough envl safeguards |
|
|
|
e. Canadian workers & firms are subsidized
by the govt |
|
|
|
Canadian health care is subsidized & is considered to be one of
the best systems in the world |
|
|
|
Certain industries in the US are subsidized such as pork, tobacco,
steel, etc. |
|
| |
Certain industries in the US are protected from imports such as cars,
lumber, airplanes, etc. |
|
|
|
Strike in Mexico |
|
|
|
Reynosa, Mexico has four auto plants w/ 70,000 workers |
|
|
|
Workers at an auto plant in Reynosa, Mexico struck over inadequate
profit sharing of only $30 per worker |
|
|
|
The UAW did an econ analysis, pointing out the high levels profits
to the manufacturers |
|
|
|
The UAW's analysis of profits at the plants in Reynosa, Mexico
won an increase in profit sharing to $44 w/ food coupons worth $32 |
|
|
|
It is in the interest of Am workers to see that all workers around
the world are treated fairly |
|
| |
THE EFFECTS OF NAFTA INCLUDE US JOB GAINS & LOSSES,
LABOR ABUSE, ECON INSTABILITY IN MEX, MANY SPECIFIC TRADE DISPUTES |
|
| |
Labor & Perot predicted the loss of many jobs to Mexico as a result
of NAFTA |
|
| |
Job losses have happened to some extent, in that NAFTA made wages
open for negotiation because of intl competitive pressure thus reversing
the Labor's historic gain where they had reduced the wage differentials
& created a stable wage base for the mid class |
|
| |
There has been some job loss, but growth in the US econ has covered
up the southern job migration |
|
| |
Labor abuse in Mexico is widespread |
|
| |
Mexican plants sometimes have guards to keep workers in line
& keep reporters, unionists, activists, etc. out |
|
| |
The UAW wants US manufacturers w/ plants in Mexico to treat workers
fairly |
|
| |
NAFTA did not create as many US jobs as its backers promised &
more jobs have gone South than anticipated |
|
| |
The US trade surplus w/ Mexico narrowed in 1994 because of the
surge in US imports from Mexico |
|
| |
The surge in Mexican imports relative to US exports to Mexico is evidence
that NAFTA did not create as many jobs as predicted |
|
| |
The Clinton Administration estimated that NAFTA created 320,000 jobs |
|
| |
The Dept of Labor estimated that NAFTA eliminated 215,000 jobs |
|
| |
NAFTA supporters question all these job figures |
|
| |
The devaluation of the Mexican peso hurt the Mex econ thus limiting
the predicted level of Am product purchases by Mexs |
|
| |
One of the major reasons for the decline of the peso was because Mexico
owed so much money to the intl community, & was at risk in paying
it back |
|
| |
The devaluation of the peso lowered the standard of living of
average Mexicans |
|
| |
The envl protections of NAFTA are weak in that there are many
cases of illegal hazardous waste disposal, an increase in birth defects,
& a lack of water & sewage treatment |
|
| |
NAFTA, globalization, deindustrialization, & other "sudden impact"
trade policies have created competition which has reduced growth in
the Am standard of living |
|
| |
In the 1950s & 60, the US standard of living rose rapidly, but
since then the average wages of Am. workers have grown more slowly &
the wages of younger wkrs w/o a college education have declined resulting
in increased income inequality since around 1980 |
|
| |
MEXICO HAS EXPERIENCED ECON INSTABILITY AS A RESULT
OF NAFTA |
|
| |
NAFTA has not helped Mexican workers, furthermore, globalization
has not helped non core workers primarily because "free trade" is occurring
at a faster rate than societies & wkrs can adapt |
|
| |
Wages in Mexico, the US & Canada have fallen since
NAFTA was implemented |
|
| |
The ultimate effect of free trade, NAFTA, etc. is that core workers
lose jobs, or must work at a lower wage, the env is harmed, all while
corp
profits have grown |
|
| |
In response to opposition to the pact in the US, the three countries
agreed in 1993 to supplement NAFTA w/ three side agreements |
|
| |
The three pacts or side agreements to NAFTA established commissions
to monitor developments related to envl & labor issues and to help
solve problems that may arise as regional trade & investment expands |
|
