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View Diary: Open thread for night owls: Does your boss want to create jobs...overseas? (120 comments)

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  •  it actually started during the Carter Administrati (1+ / 0-)
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    JeffW

    Until the 1970's, economies were largely nation-based-----American corporations made their money in America, and Japanese corporations made their money in Japan. The US ruled the world, economically, because it was the only major economy that hadn't been bombed or burned out during World War II.

    By the 1970's, however, two things happened---the bombed-out economies were recovered, and national markets began to be saturated. When Japanese car and steel companies could no longer expand within Japan, they looked outwards--and the US, being the largest market, was their target.  The result was 20 years of trade wars, in which the fat happy US corporations suddenly found themselves under relentless attack by competition they had never had to face before and were entirely unready for. The result was economic slaughter on a massive scale, as a large number of large companies went belly-up, and an even larger number disappeared into mergers and acquisitions.

    The survivors had no desire to ever go through that again, and so the WTO was set up to regulate international trsade, to give every corporation equal access to every market, to insure that everyone was under the same rules and that everyone was following them. Multinational corporations expanded rapidly--they now have most of their productive capacity located outside their "home" countries, and make most of their money overseas.

    The economic world has changed entirely.  It is no longer the same place it was in 1995.

    Alas, most governments (and most citizens) have not recognized the extent and scope of that change, and are still operating under assumptions from the 70's that are simply no longer true.

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