The US employment report for November showed only 39,000 new jobs created, when economists were hoping for 140,000 jobs. The unemployment rate jumped to 9.8 percent.
This is a matter of serious concern. In spite of stimulus and quantitative easing, the US economy is not able to create the jobs needed to keep their people employed. The problem faced by the US will cascade around the world. We can expect tough times ahead, possibly a double dip recession, maybe even a global depression.
The problem faced by the US can only be solved through protectionism in some form. I expect the US to adopt some protectionist measures, although it does not have to be large scale. This will be a watershed, as the US had been promoting globalization for two decades. The boomerang had swung back to hit them.
I believe that some form of protectionism will be good for most countries. It allows each country to have its domestic economy and develop its own identity and culture. It will allow the income gap to narrow in the country and hopefully, keep the cost of living down.
Globalization has benefited only a small proportion of people, at the expense of the well being and financial security of large numbers of people. It has caused damage to the environment and other negative social impacts, including a declining birth rate. In my view, the benefits of globalization is outweighed by the harmful effects.
Singapore has benefited from globalization, including luring the super rich to avoid taxation by moving their profits here. We will lose this source of revenue, but we can cope. After all, Singaporeans are an educated and hard working people. Let me make a honest living, and not enrich ourselves at the expense of other countries. Maybe, we will see the property prices come down to more affordable levels!
Tan Kin Lian
Yes, the data is not rosy. Lets look at it from the perspective of
ReplyDelete400 million people ( USA population)
Perhaps a generous number: half are
not employable ( children,elderly etc)
That leaves 200 million people.
Able to create 39,000 new jobs is a drop in the ocean.
I do not view this as a deep concern.
Zimbabwe is still alive and kicking
with no change, and has been so for many decades.
There has been much discussion and analysis about the economics of globalisation. Its bad, its good, it will cause mayhem, it lifts growth and reduces poverty. China has benefitted from globalisation.
It will not turn back. It cannot turn back.
There is also much talk about double dips and flat lines with U shaped pictographs.
What is certain is that there is uneveness. Some countries are unaffected, some are in debt.
Even in debt, there is food on the table, there is beer, there is tourism, there are iPads.
What about Singapore? If the arguement is USA is our biggest customer, then, goodness... even in trillion dollar debts, they can still afford our exports!
The doomsday scenario I reject.
The slowdown I accept.