Global economy brings stability

Posted in Other | 20-Aug-05 | Author: Jukka Aminoff

Globalization has brought more stability and prosperity to the world than anything else. Western countries are facing structural changes in their economies. Factories and other facilities have been or are going to be established in countries where there are lower wages and raw material costs.

Corporations are living in very competitive environment. Consumers want to buy products at still even lower prices. Corporations are competing against each other to serve the consumers’ demands.

Global capitalism is the only and the right way to produce merchandise for consumers. The consumer decides how the market runs. Market economy reveals what the consumer values. The consumer wants the same merchandise at a lower price. So the values are in the consumers’ wallets.

FREE TRADE BRINGS DEMOCRACY

Corporations do not want to invest in a country that has unstable conditions. Corporations do invest in countries where there is stability. Stability and the rule of law go hand-in-hand. In the long run, the rule of law can bring democracy to a specific country.

Global economy is not just business. It can spread democracy to every country. Democracy grows from stable conditions. Corporations will not invest money if the risk is too great that they will lose all the money.

ECONOMY IS POSITIVE

Anti-globalization movements are particularly to blame for saying that business is negative and greedy. This is not true. Business is positive, because corporations are producing what people need. Corporations cannot force people to buy anything. Corporations respect the right of consumers to freely choose what they want. When businesses sell their products, they hope that the consumer likes the product and will continue to buy the product in the future. In no way is business negative.

EVERYBODY WINS

The global economy brings prosperity to all people. Everyone knows the saying: "The poor are getting poorer and the rich are getting richer." The saying does not apply in the liberal economy.

Johan Nordberg says in his book “Defense of Global Capitalism” that if annual economic growth is 1%, the poor will receive 1% more wages. If the growth is 10%, the wage increase is 10%. This is a researched fact.

MORE LIBERALISM, MORE COMPTETITIVENESS

Businesses want to work in an easy environment. More liberalism means less corruption, bureaucracy, taxes and restrictions.

A liberal economy brings more freedom, jobs, opportunities, prosperity, stability and competitiveness than any other measures.

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