How the Globalized Market Affects American workers and Democracy

    What benefits does the future evolving globalized world have for American jobs? I argue that the benefits are minimal and the cause is a combination of politics and the global market. American jobs are being outsourced to the cheapest bidder. E lancing is becoming the newest hiring system of the new global era. Companies are being divided and separated like puzzle pieces. American workers have to receive more skilled job training to excel in the demanding American job field of today. This paper will show that a globalized world has become a world intertwined and without borders and without borders, American jobs are becoming global jobs. For the companies to outsource their workload, financial and economic systems needed to become harmonized. With this harmonization came the need for skilled worker to be logical and educated skilled workers. The employees to choose from have grown from the American population to the global population. The American workforce needs to educate their citizens in order for them to succeed in the global workforce of today. Education takes time and the advancement of technology will not wait for educational training. The global political system is evolving from a democracy based upon Constitution Liberalism to an illiberal democracy. This effects American jobs since illiberal democracy leads to the erosion of liberties, abuse of power and ethnic decisions which will could lead to the fall of union protection for American workers.    The global workforce is vast. Thurow argues the new global economy has led to the need for unskilled workers to decrease substantially. Employers have the global market of skilled workers to choose from. There is no longer a need for the unskilled worker to be considered. Thurow also argue that the global era has led to real wage loss of many Americans. Employers can relocate globally if they do not want to pay their employees benefit or wage increases, but it is more difficult for the employees to move. There is need for the United States workers need to develop ways to make them more marketable and competitive in the global market in order to survive the global working pool of skilled workers. The new form of employment in the global market is e lancing.     In the article The dawn of an e lance economy, it is noted that big company names that were once known for major employment opportunities now rely on outsourcing for their jobs. This article stated that the largest private employer in the United States is Manpower Incorporated, a temporary employment agency. In the article, If you got the skills, She’s got the job, the lack of skilled workers is an employment concern. An example given was a welder can be easily found, but a welder with the science and mathematical knowledge behind the weld is more difficult to find. The new global era of technology has provided many luxuries for everyone concern, but with these luxuries come sacrifices. People need the education and knowledge that is needed to survive in this new era. I argue that the reason that Manpower is the largest private employer is that they are an agency that can house the workers that can be employed at a lower cost to the employer. Employee benefits are not paid to Manpower employees, this saves money.    In the article The dawn of an e lance economy, research suggests that companies that companies that conduct transactions internally grow larger but when they outsource within the open market, they shrink. In the new global era outsourcing is a cheaper way for businesses to grow, but at what cost? I would argue that the open market has a short term advantage of cost savings, but in the long run the business begins not to be a single business or company any longer but a small piece of the global market. The downfall of the new era of technology and the work field is the trust and respect that a company builds over time with its customers. Companies as GE, Samsung, MGM movies, etc. will be a thing of the past. Consumers will purchase items needed and those items could have a network of different small corporations or outlets behind them. Here today, gone tomorrow will be in place of long-lasting, trust, stability. I don’t know if this is so great. I would argue that quality control will be a factor that could be lost in the new global era of technological advancement along with fewer jobs for the American people.     Moving production out of the American domain and into the hands of an outsourced company provides the opening for loss of productivity, quality control and consumer trust. Companies outsource because of lower production cost. I argue that the money that a company saves is lost in overall manufacturing and quality return costs. According to a 2010 study by the American Society for Quality, although production costs were lowered from the outsourcing of American jobs, lower quality control, poor customer service, communication problems and slower delivery times were the results of outsourcing. This same study, which polled three- hundred companies that outsourced overseas, found that fifty-five percent of companies were “substantially dissatisfied” with their outsourcing providers. The Journal-Sentinel details the case of Master Lock’s recent recall of 752,000 gun locks due to quality control issues (Ensinger, 2010). I argue that companies need a quality control representative in the outsourced company in order to insure productivity and quality control guidelines.     As the article The late, great globalization, suggests businesses might flourish and become flexible, people might find more leisure time, I feel that progress might be happening too fast for people to adapt. As in the case of the fall of Communism, some countries are still left underdeveloped in a fast-paced evolving world. One thing is for sure, the global era of an evolving technological global era is upon us. This brings changes to the employee, employer standing, the consumer and supply relationship and to the corporate world as we know it. Globalization has opened an infinite door of possibilities to our future. No longer will the American worker have a chain of command, but rather a technological system with no face. With the fast pace advancement of technology, the American job opportunities are decreasing.     The American consumer is now the world consumer. Globalization has brought the global markets to everyone’s front door. In an article by Gary Grappo, the fact that underdeveloped countries are now learning to produce the products made in the developed countries (2016). This is due to their lower wages and taxes that make them a cheaper financial investment for distributors.  Compass Management Consulting released a report in 2010 concluding that many companies overestimate the savings that will result from outsourcing their production by failing to account for the loss of productivity which is a result from moving the production out of house (Ensinger, 2010). This same report founded that companies pay approximately forty percent less in payroll costs by outsourcing, but on average this comes with a sixty percent drop in production (Ensinger, 2010).     American workers also need to be aware that they might not be working for American companies just because they are working in America. American companies are beginning to be pieces of a global network, not one company. These pieces are owned and run by other countries. Gary Grappo makes the suggestion that the position of America in its global leadership is threatened by the technological advancement in this new global era. “It is rationally inconceivable that the U.S. or any major world power can simultaneously maintain such a role and turn its back on an interdependent world. The American workers of today are not American workers but global workers (2016).     In an article by the Councils of Foreign Relations, for America to preserve its global power in the time that the world seems even closer to be a global network of one world, America needs to call for new regimes to be put into place as it did after World War II (Lindsay, 2003). These included the Marshall Plan, the Bretton Woods monetary system, and the General Agreement on Trade and Tariffs to promote free trade. Constitutional Liberalism is the building block to American democracy and in such America has a duty to preserve the rights of American workers in the global market.    Dr. Paul Roberts references a University of California study that concludes that fourteen million white-collar jobs are in jeopardy of being outsourced offshore. Many of these jobs being outsourced are ones that generate the bulk “of the tax revenues that fund our education, health, infrastructure, and social security systems (Roberts, 2016).”  This brings up the argument that the global world of marketing is jeopardizing the fundamentals of the American people’s success. Dr. Roberts also suggests that the American workers that are left unemployed or with a lesser income due to outsourcing and e lancing, will be displaced in the consumer market. No money equals no purchasing. America is not protecting the American workers from low wage foreign labor which now makes the American workers higher wages unprotected. In the article by Dr. Roberts, “The Department of Labor reports that more than one in three workers who are displaced remains unemployed, and many of those who are lucky enough to find jobs take major pay cuts. Many former manufacturing workers who were displaced a decade ago because of manufacturing that went offshore took training courses and found jobs in the information technology sector. They are now facing the unenviable situation of having their second career disappear overseas (Roberts, 2016).”    With possibilities comes fallbacks and this has happened in how the global market has affected politics. The cost of the new era of global marketing is the weakening position of the national government. Thurow argues that globalization and multinationalization have reduced the powers of governments to regulate and set independent economic policies. Examples provided were Citibank, investment banking in London to avoid US laws, European airlines buying large share in US domestic airlines that would be illegal if the buyer were a US airline. The global market is harmonious but the laws are not and companies are finding ways to profit from this. The global market has advanced beyond the borders of nations states to the economic borders of region states. The global market is one where the options are made more by the companies and the market field, not the government. What is best for the company to succeed is the fuel behind this market. The global market has an increased flow of economic interactions.         The danger in illiberal democracy is the erosion of liberties, abuse of power and ethnic decisions and even war. Constitutional liberalism must lead a countries democracy in order for the people to be protected and the country be led by a true democratic government. I would argue that culture and civilization are the basis of Constitutional Liberalism. So can democracy be without culture and civilization? It is the people and their basic civilized rights that need to be protected. It could be easily argued that cultural rights fall within this scope. I do agree with Ajami that there are times where one’s cultural belief might have to be put to the side in the bigger picture of global economic success of a country. I also agree with Ajami that countries led by illiberal democracy are at high risk of losing their cultural identity for political advancement in the modernity’s of today’s global world. I would argue that with the integration of cultures and technological advancements and modernity’s of the new global era comes the danger of the historical Constitutional liberalism and democracy of the West becoming something left to history books. The Western government is one that holds the guidelines for developing countries to follow. Without leading for the people and their rights, governments have proven that democracy can be dangerous for the people. America and other countries need to make it a goal not to let the modernity of the global era integrate further into the basis our democracy, Constitutional Liberalism and democracy.    With the global market of today, came a new rule to adapt financial and economic systems so that they would be harmonized. An example of this is the global financial system. The Chinese banking system was very different twenty years ago. If someone deposited money into the bank, it could take three months to get your money out of the bank due to the financial regulations. Today, the global economy has led to the harmonization of the global banking system. According to Thurow, the world’s money is controlled by the US Federal Reserve Board, the Bank of Japan, and the German Bundesbank (1998). Global capital markets are facilitating increased internationalization in every area of finance. A local bank, for example, could be servicing international loans; this would not have been imagined before the fall of communism.    The global world is fueled upon the technological and economic progress of the world. I argue that the individual governments need to monitor and have control on the best interests of their people within the workforce of the global market. In the article by Ohmae, the difference between nation state and region state was discussed in the new global market era (2004). The nation states are well defined with any map, where as a region state is defined by economic zones. In the new global economy, regions states are outlined for goods and services provided by the global market. Examples provided included Nestle and Procter & Gamble and their business expansion in Japan. Instead of focusing on Tokyo, a crowded market, they looked at the Kansai region where the 22 million residents were as fluent as Tokyo, but the market was less crowded (Ohmae, 2004). The argument being that global markets are changing the border lines of countries. For the global market is one of services and goods, which lines do not exist and this is where the government needs to step in and provide guidelines for the American workers to be protected.    The global market is harmonious but the laws are not and companies are finding ways to profit from this which hurt not only the American workers but also the American consumers. The cost of the new era of global marketing is the weakening position of the national government. Thurow argues that globalization and nationalization have reduced the powers of governments to regulate and set independent economic policies. Examples provided were Citibank, investment banking in London to avoid US laws, European airlines buying large share in US domestic airlines that would be illegal if the buyer were a US airline. The Western government is the one that holds the guidelines for others to follow; the American government needs to protect the American worker and consumer from the advancements in the global market. The American government is the only one that can make sure that the Constitutional liberalism that fuels our democracy stays intake and the American people are supported and protected in the ever-evolving global world.    In conclusion, American workers are not protected in the new global era of global marketing. The technological advancements have provided underdeveloped countries the opportunity to produce goods that developed countries use to. This has caused alarm in that the American jobs are being outsourced to cheaper laborers of other countries. This has left American workers unprotected from the foreign lower wages. American workers need more education in skilled training to be successful in the global job market. It is not enough to only be able to do a skilled job correctly; a global worker needs to understand the mathematics and technology behind the skill itself. America, in general, has not instilled this quality in their workers in the past and now the workers of today are suffering from it. With global politics pushing illiberal democracy, American workers are at jeopardy of not having union protection. The need for America to put into effect regimens as they did after World War II, which protected not only the American people but the power of America itself, is great. The global market and era of today is only a stepping stone for the future, America has protected its standing otherwise it will be lost by the advancement of globalization, technology, marketing, and the world as we know it today.

References Ensinger, Dustin. (2010, November 27). Outsourcing does more harm than good. Economy in Crisis. Retrieved from http://economyincrisis.org/content/outsourcing-does-more-harm-good Grappo, Gary. (2016, August 23). In defense of globalization. Quilibrium International consulting. Retrieved from http://www.eqinternationalconsulting.com/2016/08/23/in-defense-of-globalization/ Lindsay, James & Chair, Maurice & Daalder, Ivo. (2003) The Globalization of Politics: American Foreign Policy for a New Century. Council on Foreign Relations. Retrieved from http://www.cfr.org/world/globalization-politics-american-foreign-policy-new-century/p6330 Ohimae, Kenichi. (2004). The rise of the region state. Foreign Affairs Roberts, Paul Dr., (2016, March 13). The offshore outsourcing of American Jobs: A greater threat than terrorism. Global Research. Retrieved from http://www.globalresearch.ca/the-offshore-outsourcing-of-american-jobs-a-greater-threat-than-terrorism/18725 Thurow, Lester. New Rules: The American economy in the next century. Harvard International Review. 1997/1998. (20)1. Pp. 54-59. Retrieved from http://www.jstor.org/stable/42763683 Accessed: 18-05-2015 03:41 UTC