Given the nature of our truly global market, companies are able to go and do their business in an area that specifically suits their needs. Without governmental regulation, big companies are able to find tax breaks in specific states, are able to withstand a lot of anti-trust policies that were outdated in some areas, and generally maneuver around a lot of the nuances that can hold back profits. Citibank was cited as an example, where the investments take place overseas in London to avoid the U.S. laws prohibiting investment and commercial banks being the same entity.[1]
Many countries on the upswing in terms of GDP and its relation to the total global domestic products are tapping into their potential by selling and making specific goods and services to the global economy. In turn, wages tend to drop for some things that used to be extremely profitable. Thurow notes this when looking at the average wage for Americans in unskilled labor jobs. While unemployment rates can be low, the global economy really on caters to those who have the money and resources to access its vast potential. Again, and looking at the Stock Market as a prime example, this is where Thurow points out that there was a real swing in levels of earning, where the top 10-20% of the country in terms of wealth absolutely thrived.[1] However, at the same time, this created a massive gap between what is successful and what is not. Furthering the problem, with the introduction of the Euro, now comes the war against its counterpart in the dollar. A drop in the dollar would signal an increase in inflation. The Euro gives companies and investors a truly viable option if they do not want to invest in dollars, further perpetuating the idea of a global market and economy.
This is a user sandbox of BHRaven5. You can use it for testing or practicing edits. This is not the sandbox where you should draft your assigned article for a dashboard.wikiedu.org course. To find the right sandbox for your assignment, visit your Dashboard course page and follow the Sandbox Draft link for your assigned article in the My Articles section. |