Globalization and the Rise of Monopolization Speeds Economic FailureJeff Rogers
November 14, 2008 — 1,476 views
Capitalism's base tenant of supply and demand requires a healthy environment of competition. Many of the calculated moves toward a global market have undermined that tenant. In a competitive arena, there are bound to be winners, and the governments used to regulate that to prevent monopolies from consolidating control in market sectors.
On a national level, consolidation has been occurring at increasing rates for the past 20 years. Do you remember the old mom and pop Hardware Stores? They are now rarely, if ever, found. The same has been occurring in the banking industry, as well as in nearly all other sectors. Control supply, and what happens to capitalism's balance? It no longer works.
On a global scale there are "winners" that are taking over the world food supply. The mining industry from Gold to Coal, is being consolidated through mergers and takeovers. Many of the world governments have recently succeeded in placing the diverse interests of investment banks into centralized hands, not to mention AIG.
What does this continuing and quickening trend portend for the capitalist system? It is no longer predominantly capitalist in nature. To continue theoretically as though it is simply begs more disaster. There needs to be a commitment to protecting the foundational precepts upon which the best proven system of economics are based, but can that happen?
Globalization will continue, and we must continue to partner with forces that have commitments to economic ideologies that have proven to be failures. In the west, we have made strides in the past that have inhibited, though not eradicated graft and corruption, but now we are letting our protective shields down in this regard. The result has been to allow monopolies to grab control, and in the resulting position of autonomous power, these organizations have been undermining our economic base with sacrificial, individualist greed.
The United States is still the predominant military and economic power in the world, though admittedly, not to the scale previously enjoyed. The retention of this position, however reduced, begs that the US craft a new approach that will protect our nation from further economic ruin.
Capitalism has worked in the past, and there may be some small comfort in the past, but it is not working now, largely because there has been a sell out of it's base principles. Will a global economy allow the fundamentals of capitalism to be re-asserted to a degree necessary in preserving the system? If not, lets figure out a better way before its too late.
About the Author
Jeff Rogers is teh President and Founder of www.dragnetmarketing. He is an internet marketing strategist who focuses on the online viral phenomenon. He has created free Viral Video pages that amass ad real estate downline as more people and companies use them for presentational and networking purposes.