[HN Gopher] Globalization is evolving, but does not seem to be r...
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       Globalization is evolving, but does not seem to be reversing
        
       Author : ksec
       Score  : 49 points
       Date   : 2023-05-28 16:37 UTC (1 days ago)
        
 (HTM) web link (conversableeconomist.com)
 (TXT) w3m dump (conversableeconomist.com)
        
       | bluetomcat wrote:
       | The amount of international trade isn't a good indicator for
       | measuring globalization trends. Two bordering countries could be
       | trading raw materials to produce domestic products for domestic
       | consumption. Globalization is when you are highly likely to be
       | able to consume the same product at 2 distant points on Earth.
        
       | photochemsyn wrote:
       | "The vast complexity of modern production" is not the driving
       | factor behind globalization, as demonstrated by American
       | manufacturing systems in the 1960s and 1970s. If you have the
       | necessary raw materials, energy supply and labor force then
       | manufacturing can go on anywhere - all you need is the know-how.
       | 
       | The driving force behind globalization was the desire for cheap
       | labor, the one component of the triangle that is most easily
       | price-gamed. Of course, this doesn't affect trade between France
       | and Germany, as moving a factory from one country to the other
       | has no effect on production costs. In contrast, moving a factory
       | from Detroit to Mexico, or to Indonesia, or to China? A 75%
       | reduction in overall labor costs is all profit, minus shipping
       | costs of course. Of course, it also drives down wages for those
       | in the manufacturing sector while also shrinking that sector.
       | 
       | The other side of globalization with respect to labor is the
       | import of cheap labor when it comes to non-outsourceable jobs
       | like construction and agriculture, which again drives down the
       | average wage in these industries (as migrants tend to work for
       | less) - and this even extends to the tech sector, with the H1B
       | Visa program being a point of contention. This also drives a
       | political backlash with consequences (see migrant field workers
       | fleeing Florida en masse at present, for example, as the state
       | passes laws banning their employment).
       | 
       | Trying to write about globalization while ignoring the primary
       | motivations and goals of the architects of globalization is kind
       | of silly, and the main thesis - that modern manufacturing is just
       | too complex to be done within the USA from start to finish - is
       | just wrong.
        
         | zokier wrote:
         | Also more recently environmental regulations; afaik its not
         | unusual to shift production to countries where environmental
         | regulations, or their enforcement, is laxer to further cut
         | costs. It helps that cheap labor tends to correlate with lax
         | regulations.
        
       | nologic01 wrote:
       | _If globalization was a person it would be the ultimate Jekyll
       | and Hyde personality_
       | 
       | There is what one might term the good, if not sublime,
       | globalization. For as long as there are vast disparities in,
       | e.g., life expectancy and educational level across the planet,
       | our tribe lives a life out-of-balance (in the Koyaanisqatsi
       | sense), unfair, unstable, miserly, antediluvian. Good
       | globalization means flow of information, capital, people, goods
       | that is (or should be) the great equilibrator, restoring balance.
       | 
       | The other face of globalization is decidedly darker. It consists
       | of what one might term conscious _ESG arbitrage_. Effectively
       | pursuing short-term extractive profits by identifying global
       | opportunities to hide environmental externalities such as
       | pollution, exploit inferior labor conditions and benefit from
       | poor governance systems (oligarchs and the like). Bad
       | globalization means sharply raising inequalities within a region
       | while modestly lowering inequalities between regions.
       | 
       |  _If localization was a person it would be the ultimate Jekyll
       | and Hyde personality_
       | 
       | There is what one might term the good, if not sublime,
       | localization. For as long as one region lives at the expense of
       | others, slurping (ultimately by force) resources and human talent
       | from across the planet our tribe lives a life out-of-balance (in
       | the Koyaanisqatsi sense). The good side of localization means
       | that, by-and-large, communities in all regions become adapted to
       | and live in equilibrium within their _own_ ecosystems.
       | 
       | The other face of localization is decidedly darker. It consists
       | of what one might term _Ideology arbitrage_. Effectively pursue
       | narrow-minded, isolationist policies and otherization, based on
       | politics, religion or other discriminating factors in order to
       | prop and persist a sub-optimal power structure arrangement.
       | 
       | The bottom line on globalization/localization is that they are
       | sufficiently ill-defined that every political agenda can find
       | something useful. Yet as the above juxtaposition hopefully
       | illustrates, it does not take that much to start being more
       | honest, less obfuscating, about what we are really talking about.
        
       | motohagiography wrote:
       | Most of the predictions of the negative aspects of globalization
       | from the 90s came true, specifically, about the hollowing out of
       | working class jobs, the polarization that would result, and the
       | erosion of western values to accomodate the despots we trade
       | with. I was against globalization then because it was just a way
       | for governments to collude with one another to dilute their
       | accountability to their national constituents. Today, these
       | governments literally import voters and distribute them
       | throughout their country to prop up their political parties in
       | contested areas because natural citizens don't vote for the
       | looting and demolitions of their own societies.
       | 
       | Globalization just became "globalism," and remains a cynically
       | anti-democratic and anti-nation state movement that is the
       | expression of a totalitarian urge. It is not reversing, but its
       | growth has taken a brief break. Its architects know it is going
       | to cause conflict, and judging by what we saw of them in the
       | first few rounds, I suspect they are only resting and organizing
       | for the next phase.
        
       | whitemary wrote:
       | Stupid article, but funny that the title gives a nod to Karl
       | Marx's "history moves in a straight line" analysis. Liberals have
       | been furiously criticizing this idea for 150 years.
        
         | dang wrote:
         | Can you please not post shallow dismissals, please not call
         | names, and please make your substantive points thoughtfully? A
         | different version of your comment here could have explained
         | your point neutrally and in detail--which I think could have
         | been quite interesting and we could have learned something
         | from. But this type of flamewar putdown just pours toxins into
         | the environment.
         | 
         | https://hn.algolia.com/?dateRange=all&page=0&prefix=true&sor...
         | 
         | If you wouldn't mind reviewing
         | https://news.ycombinator.com/newsguidelines.html and taking the
         | intended spirit of the site more to heart, we'd be grateful.
         | Note this one: " _Please don 't post shallow dismissals,
         | especially of other people's work. A good critical comment
         | teaches us something._"
        
       | adhesive_wombat wrote:
       | If it's more efficient, as long as market forces outweigh
       | "localist" forces, globalisation will continue down the gradient1
       | to some minimum "energy state".
       | 
       | The amount of money involved means that to tip that balance, you
       | need a very strong, coherent and stable localist sentiment. The
       | complexity of the system and the willingness of individuals to
       | attempt to wiggle though to the minimum means you need a very
       | strong, durable and controlling government to keep the unstable
       | system together in a way that persists for a very long time: at
       | least many decades and beyond. This is tricky to do when
       | countries that don't enforce localism probably will appear to
       | advance more and faster, and especially tricky when you think
       | that the very people who want localism the most also probably
       | chafe the most at the idea of a more centrally-controlled
       | economy.
       | 
       | It's certainly more than possible that in the long, long run, the
       | localist countries are the tortoises and the globalist ones the
       | hares, but it's a hard sell to the public during that period when
       | neighbours have ample food and electricity and infrastructure and
       | you don't because you're still working on DIYing the supply
       | chains.
       | 
       | 1: this is a changing gradient: you might find that where the
       | minimum is changes over time. For example what was once Germany2
       | became Japan, then Taiwan and now China. This will continue,
       | probably via South and SE Asia to Africa.
       | 
       | 2: "Made in Germany" was originally an involuntary mark of an
       | inferior imported product into the UK. Relevant in this context,
       | because circa the 1880s, Germany had strong protectionist
       | policies and thus had governmentally-forced local, low-quality
       | and cheap (to other countries) industrial capacity. A century
       | later and it's a mark of pride, so the tortoise is, if not in the
       | lead, not doing too badly! That Germany was wrecked in the
       | interim by two World Wars on the trot makes it hard to
       | extrapolate that success onto other countries going forwards from
       | the present.
        
         | bannedbybros wrote:
         | [dead]
        
         | gishbunker wrote:
         | [dead]
        
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