This is a thoughtful article! While free trade and globalization may be a semi-successful libertarian attempt to eliminate government from the marketplace, business elites are not so ideological. Over the centuries, kings, aristocrats, business interests and political parties representing ordinary people have been fighting over who should control government, so their interest group would dominate the government and or a world government. Whatever their original intentions, organizations such as the WTO,the IMF and the EU, to name a few, represent the money markets and investment bankers. For the moment, Germany is the economic engine of the EU. I don't think this will last, as China is purchasing European companies, and its products, through "free trade, will displace even Germany's industrial production. Germany produces quality industrial products, but productivity demands low wages, and, for the present, Chinese wages are lower. Chinese merchants in Italy bring in cloth from China to make their products, by passing Italian cloth products.
China is in the process of replacing the formally developed Western economically imperial powers as the dominate supplier of Industrial products. Unlike Western companies, Chinese companies have a government backing them. It was no accident that the British Navy is the senior service, because trade needed to be protected.
However, no one can control the world politically or economically. Through productivity, wages that support Western markets will be reduced, and demand for industrial goods will be reduced. Chinese goods will be dealing with a limited market, and trade based Chinese jobs in China will be lost. So much for national harmony?
Pervis James Casey
Dec 27 2010 - 5:08pm