Globalization.....
Is a great concept
If everything was about economics
But
Not everything is about economics
That’s exactly why
Globalization has not worked
What happened?
Well - it’s simple
Developing countries such as China lifted millions out of poverty
by artificially inflating their currency
Which made it cheaper for global businesses
to make things in China
instead of making things in their native countries
This created a Chinese middle class
And simultaneously created an Asian Oligarchy
It also made some westerners very wealthy
Because they charged the same prices
- if not higher prices -
while maintaining lower costs of production
This increased the margin that matters
Which is operating profit
This is a no-brainer if you own a big business
But bad if you run a government
And make economic policy
Globalization can only work
with mass immigration
and free movement of people
Because
The whole point of globalization
Is to reduce the cost of production
To make things cheaper
So mass immigration decreased wages for the average westerner
And destabilized their standard of living
Something the average person is not happy about
Because things actually became more expensive
Here is why...
Real wages were reduced
because interest rates went to zero
while inflation remained at 2% Approx.
(real inflation was probably much higher
Real inflation is the inflation that matters to you)
Inflation made people’s wages less valuable
because
prices increased faster than wages (stagflation)
Wages which were already reduced
because of the increased supply of labour
(which is why many people work multiple jobs just to pay the bills)
Then their savings in the bank decreased in value
because
inflation was higher than the interest they received for saving
This was designed to encourage people to spend money
and thus create liquidity in the economy
instead of keeping it in the bank to accumulate over time
Then because interest rates were lower than ever
The economy was flooded with cheap liquidity
people took out loans which cost almost nothing to maintain
Which made prices increase again for the average man
while wages did not increase
The consequences of this policy began to appear before Brexit
Which is why Brexit happened
Most people want stability
A stable job
A stable life
But prices were increasing
People were paid less for their work or people lost their job
People had bills that they could not pay
More and more people were going homeless
More and more people went to food banks to feed their families
(Which is also why Jeremy Corbyn became labour leader
he tapped into middle class discontent)
The problem with mass immigration
Is it reduces the standard of living for the average man
There is no government on earth
That can justify lower standards of living
simply because of government policy
Brexit was a rejection of economic injustice & mass immigration
by the average man
The European Union was not a problem before mass immigration
No one had ever heard of Nigel Farage in the early 90s
No one cared
The going was good......
So what’s next?
The wars in Iraq, Afghanistan, Libya and now Syria
Created a refugee crisis and a migrant crisis
(they are two separate things)
Many refugees from Syria, Iraq & Afghanistan
began to flood many European countries
(who can blame them? If your country was on fire!)
The Civil War in Syria began because of the creation of ISIS
ISIS was created in the power vacuum
that the allied forces left behind
when they left Iraq without an appropriate plan
Likewise
many economic migrants began to flood Southern Europe via Libya
Libya is important
Because
Colonel Gaddafi acted as a stopgap
prior to being deposed by Hillary Clinton
Gaddafi prevented people
from attempting to cross over to Italy & Greece
Now that Gaddafi is gone
people are now able to cross the Mediterranean Sea
Whenever they like
This is where the situation reaches boiling point
The Schengen area means free movement of people within the EU
Many countries offer premium social services for free to anyone
Free social services are financed by the taxpayer
The reason why the taxpayer pays for these social services
Is so the taxpayer can use these services when times get tough
For example
When people get sick
they go to the NHS
When people can’t find a place to live
they apply for council housing
However
The taxpayer can't use these services
the way the taxpayer used to use these services
So the taxpayer is not happy about this
So where does this lead?
The social service that is most at risk is healthcare
Populations are living longer and longer
Populations are getting sicker and sicker
Populations are getting bigger and bigger
the situation is critical
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