Globalisation and Inequality

This thinkpiece is opinion with some small basis in researched reality, but please don’t take this as definitive. All my own views.

The argument being made in the US post-Trump and in the UK post-Brexit is that the forces of globalisation and free trade have led to increasing inequality, and that’s what the working class of these countries is getting upset about – their increasing distance from the “elite” that are perceived to benefit from the globalisation at the cost of the working class.

Except what’s happening here – to put it in Thomas Friedman’s The World is Flat terms – is that the playing field is flattening, at least at the lower end of the income distribution. This means more than just bringing the developing countries up to the standard of the developed countries – it’s also causing the developed countries to drop down a little, or more rather a reversion to the mean.

The way the working class in developed nations are feeling the pain is an inevitable consequence of this globalisation – the advantages they had were only ever relative, because for all that there’s said about equality, it was never the case that developed economies were “equal” – it was entirely in their average lying well above the global average.

But now… it’s not so much. The working class in developed economies is being levelled with the working class in other economies. The working class of developing economies are coming closer to equal footing as borders come down in the pursuit of the dollar. Immigration makes this even more so, where those willing to work for a low wage by developed economy standards are comparatively better off by their personal standards because it’s a high wage by their own standards; this only starts to break down when the wages in their home countries lift enough that the differential isn’t worth it.

Inequality has always been there; inequality, globally, has gotten lower. However, where it was also unequally spread – where some countries had less internal inequality – it’s now being more equally distributed around the world as a global population is included and free trade and movement of labour makes the production of goods anywhere the same.

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A Love Letter to Australia

First Dog on the Moon writes a love letter to Australia:

Hello Australia, I have always loved you.

There isn’t space here to list everything as Australia takes up a lot of space.

I love standing still in the bush when it is pushing 40 degrees…

I love watching Test cricket. With the sound on the TV off and the ABC radio on…

Geez we can be funny buggers though. I love that. And the way we talk, I reckon if the science could work out a way to weaponise an accent, Australian voices could blast a hole in the moon. Yeah nah

I love the fact that everyone’s taken to be equal, how we talk about our leaders as Bob and Paul and Johnny and Kevin and Julia and Tony and Mal, none of this formality nonsense.

I love how “She’ll be right,” is a legitimate attitude to just about everything.

Love this peice.