An economic paradigm is a series of “informal rules created due to transactions between sellers and buyers” (“What is Economic Paradigm?”). The rules become commonplace, and become the status quo over time, which is agreed upon by the buyers and sellers. Specifically, the current economic paradigm relies on the assumptions made of the global economy after World War II. Subsequently, the monopoly on industrial development by the United States was a significant factor in the economic development of the world for the next half century. What characterizes this paradigm is a focus on globalization, modernization, and resources that may or may not still exist. A Nobel Peace Prize lecturer describes the six characteristics being: high rates of growth …show more content…
This refers to the idea that American culture, with its global outreach, is colonizing the whole world in the process of globalization. On the other hand, the native inhabitants of developing nations are building the iPhones, Macbooks, PCs, and TVs for the Western countries to enjoy. This refers to outsourcing, where the industrial might of the U.S. and other Western countries are moved to other countries because it’s cheaper to have Chinese or Indian workers make the products than it would be to have production done in the West (U.S., U.K., Europe, etc.). The consequences are a loss of jobs, poor working conditions in said outsourcing factories, but higher wages than the native inhabitants receive currently. Overall, it’s been a good idea to industrialize nations that are underdeveloped, so that the standard of living increases and more countries can live at similar standards to the …show more content…
Oil will not remain cheap, and will likely become scarce as a world resource. The solution has to be a mixture of new technologies and resources in order to adapt to a changing environment. Whether this means going out into Space or digging from the bottom of the Earth is anyone’s guess. Fundamentally, the current economic paradigm will not work given the fact that developing countries can’t industrialize too quickly without hurting the planet (through fossil fuel energies). One hopes that the world is able to understand why there cannot be an equal distribution of wealth when the Middle Class was built in the U.S., during conditions that aren’t replicable without another World War. Perhaps equality can be achieved beyond distributing wealth, and the lives of rich and poor individuals can be just as safe, healthy, and happy if certain steps are taken. But at the end of the day, I am not an economist and have no idea whether or not maintaining industrialization in certain areas will benefit the world, or even how the prices on various products affects everyday people. What concerns me is that we cannot rely on optimism alone to change the paradigm, or adapt in the current economic
...ade even more miserable and the workers have their rights violated. Both sources describes the elite nations taking advantages of the less developed countries, it may not be the country but the worker in it. Workers overseas get lower wages compared to the workers working in the more developed countries. Exploited, there’s nothing that the workers can do about it since they aren’t allowed to create unions to protect themselves. Countries are now even more in debt as some people believe that the IMF and the World Bank take advantage of them controlling not only their economy but even their politic. Inflation happens to a country, and in Jamaica, chaos was created due to that issue, the people become pugnacious and became rebellious. Economic globalization can bring many good opportunities but it could also bring some sort of different adverse outcomes to a country.
The dispute that throughout “American Exceptionalism”, is an ancient perception of which becomes a well-respected idea that is idealistically important throughout history, it makes what America will become and forever be known as. It reflects on the ideas of foreign policies to become what we call America today; in which it remains the current movement in globalization. Eric Rauchway, Blessed Among Nations, explains that globalizations the movement of the regional economies, societies, and cultures that is combined through a constituent network of communication to lower a violation of social more, which makes America a world-wide leader in combating the cultural violation to these social mores. In our time, it seems that globalization has become an large extent the product of American policies since WWII.
Every society should answer three economic questions, which are what to produce? , how to produce? , for whom to produce? The reason why a society should choose what to produce is because a product of one society’s choice is not necessarily the choice of the other choice. A society should decide how to produce goods, it is due to the fact that not all societies have the same resources, some societies may have a lot of people in them so, if they want to produce a good, they can use their human resources to accomplished their task, in the other hand societies with a low populations but a high amount of machines, can use their resources to finish their task. Some countries may be able to provide items that other countries can not, because their economy is better than those countries.
During the last 40 years of the nineteenth century the United States became the worlds greatest economic power. The rapid rate of economic growth happened for a
In this book, globalization is defined as “an internationalization of contractual hiring, exploiting even cheaper migrant labor” (page 231). Globalization is a cultural phenomenon process in which a business or an organization begins to operate their production on an international scale. In his book, we see how globalization affected corn farmers in Mexico. Globalization open the door to the system a free market trade. In Illegal People, U.S corn farmers sold their corn to Mexico, causing Mexican corn farmers to severely lose profit since American farmers were selling their corn way cheaper. An example of how globalization is seen on Sleep Dealer is how an American company privatized water in Memo’s rancho. By privatizing the water, the company sold quantities of water at unreasonable prices, leading Memo’s dad to struggle to maintain his corm field. The American company who privatized the water could this through the usage of technology. Technology is one of the factors that led to the rise of
“Slavery, colonialism and neo-colonialism have caused inestimable damage to billions of people throughout the world. They have also formed the basis for the accumulation of immense wealth in the hands of a small elite… The slave trade involved the brutal relocation of tens of millions of people in which families, communities and societies were destroyed and in which millions lost their lives in the most inhumane conditions. At the same time, slavery was a fundamental element of the strengthening of mercantile trade and the rapid accumulation of capital that formed the basis for the emergence of the capitalist system as we know it today. Colonial conquest entailed the further oppression of the people of the colonies in the form of dispossessing people of their land and their livelihoods, destroying their cultures and social and political structures and subjecting them to the rule of the colonial powers. Colonialism, in both its early expansionary phase and the imperialist phase in which the colonial powers carved up the world amongst themselves, created the conditions for the further accumulation of capital as well as the concentration and centralization of this wealth into fewer and fewer hands. Neo-colonialism continues and intensifies this oppression, leading to levels of poverty and destitution… never witnessed before. The big transnational corporations, the governments of the North and the international institutions, including the World Bank, International Monetary Fund and World Trade Organization, are working with new elites in the South to perpetuate the process whereby the rich get richer at the expense of the poor getting poorer.”
One of the main problems with this strategy is that it is a short-term remedy. Studies conducted by M. King Hubbert in 1956 predicted the rise, peak, and subsequent decline of global oil production. He predicted that global oil production would rise until around 2002 and then start declining (Campbell et. al., 1998). If one takes the oil embargo of 1977 into account, effectively decreasing the rate...
There is little doubt that the quarter century following post WWII reconstruction was a period of unprecedented prosperity and expansion for the world economy. For some twenty years after the conclusion of WWII, Keynesian economic policies in countries of the capitalist West were successful in generating rapid growth with high employment and accumulation. Global Capitalism had entered a period known as the Golden Age, where the United States played a dominant role in global stability and growth between 1950 and 1975. Unfortunately, all good thing must come to an end, as did the Golden Age in the late 1970’s when its collapse gave rise to neoliberalism.
...provided us with such goods as plastics, and fertilizer. Oil has become so valuable that it has been the cause of global conflict and war in the Middle East. The United States has been to Iraq two times in the past decade. The quest for oil has made the price of a gallon of gasoline rise from five cents, to more than two dollars. In five years the price per gallon is predicted to be around ten dollars, Americans might be wealthy but they will not be able to afford that. Alternatives to oil are being created, and although not perfect, they are made more efficient with each new idea. When peak oil occurs people will learn to be self-sufficient; it is going to take a lot of hard work to have a happy and successful life. No more luxuries such as dining out, or superstores like Wal-Mart. Oil is needed to run this suburban way of life, and the fact is the discovery of oil has nearly halted. Drilling is now taking place in the most extreme environments on Earth, and oil companies are still finding less and less oil. Peak oil is real, and it will be a problem when it occurs. The trouble is determining when it will occur, and we will not know for sure until after it has already happened.
The modern world has only existed for a few centuries. Industrialization doesn’t belong to the west, it belongs to modernity. Zakaria argues that American diplomats are so used to having their way so this may be difficult for them. To show the variety of growth seen in the rise of the rest, Zakaria contrasts the rise of China with the rise of India. Even though they’re both different, both countries have seen huge economic growth over a short period of time. China has an authoritarian government whereas India has a diverse democratic government. Also, the political goals of the two countries are quite different. China’s goals are focused on growth but also involve issues revolving around Taiwan. India’s status as a comparatively recent nuclear power makes it politically different from China. Zakaria warns that America must be careful in how it responds to both countries. In particular, Zakaria suggests that America’s greatest strengths is in its ability to generate ideas. He notes that many of the best universities in the world are found in America. He also suggests that American public education at the
Classical economic theories are the priority themes in this video. It mainly emphasizes the causes and effects of a classical theory principle. Also, generalizing what economics beliefs are and what impacts they have on society. Refers to the economy as being vulnerable. A Scottish philosopher, by the name of Adam Smith examines society relating it to a world of business affairs. He writes a book called “Wealth of Nations”, which is known as the starting point for classical economist’s theories. According to Wealth of Nations, (Adam Smith book) he believes that price wages and interest rates are considered to be flexible. Classical economists strongly believe that the economy is self- regulating. If there is an increase in spending, aggregate
Today our world needs help, but which economic theory is the best option? There are many economic systems/theories that have their pros and cons, but only three have been used. The systems are, capitalism socialism and communism. All these systems fall under the economic theories, which is a theory that states, that commercial activities based on the production and consumption of goods. (“Wordnetweb.princeton) However, the dominating system is capitalism, which Capitalism is, a social system that is based on individual rights, and it’s politically the system of freedom “laissez-faire.” (Rand) As for socialism, which is the opposite, the government controls, and owns most of the means and production this is the type of economic system it is. In spite, the capitalist system is a successful system because it helps the country run by motivation, competition, and striving toward a goal to benefit from. Nevertheless, if people depend on socialist society it lacks incentives to increase effort, and freedom of choice is limited. That is why many people and I, support capitalism because it’s an efficient system that will keep the people and there country profiting.
...ney, natural resources and causing more problems than providing solutions but globalization didn’t only reach the world in an economic approach but also a cultural one.
Science Initiative Group Institute for Advanced Study, 2007, Globalization: Trends and Prospects, Available from: http://sig.ias.edu/files/Egwang-_Welcome.pdf
The most condemning argument against globalization is certainly the fact that our world’s oil resources are quickly and irreversibly depleting. Oil is integral to globalization as it is the international fuel of transportation and international transportation is the key to globalization. Globalization is essentially the exchange of resources between global economies, so it is inevitable that globalization will cease to exist if countries cannot afford to exchange their resources. For instance, the reason many of the goods in North America are produced in countries like China is because developing countries have a human resource advantage. Chinese companies can pay their workers a fraction of what North American workers are paid to produce the same goods, thus leading to cheaper prices for North American businesses when purchasing the goods. The exchange of goods globally is built upon importers receiving cheaper prices than what they would pay at home, but the cheaper price o...