Is Globalization here to stay….I don’t think so.

Over the past decade, the pace of globalization has strengthened considerably as multinationals corporations continue to conduct business around the globe and outsourcing to low wage zones has proliferated dramatically.  Despite all the hype that this pulse is good and can’t be stopped, reality is just the opposite.

Over the past decade, the US has pursued a bubble economic policy that managed to achieve above normal GDP growth and enabled consumers to consume at an outlandish pace, which has led people to believe that globalization was making things better for everyone (e.g. making goods cheaper and somehow raised the standard of living for US citizens).  Reality is that US wages have stagnated and a significant portion of high quality jobs have evaporated.

Now that the economy has adjusted to a more real scenario where individuals have to rely on savings and disposable income to purchase goods and services,  the result will be a marked rise of unemployment, continued stagnant wages and a marked demise in the standard of living.  Without bubble policies, this would have transpired for the last 10 years and the American public would have lashed out against globalization as high quality jobs were outsourced away.  Well in case you think you can’t reverse globalization, just watch as more and more Americans lose their jobs.  Globalization has simply been bad.