The West is eating itself
The Economic Collapse blog comments today on widening inequality in the USA (http://theeconomiccollapseblog.com/archives/the-one-percent-gigantic-government-gigantic-corporations-massive-wealth-inequality-in-america/comment-page-1#comment-78618).
I think it’s time to review who’s really benefitting from globalisation. As I have said on that site:
Of course there’s going to be widening inequality if the working class is undercut by foreign labour. This would happen even if the 1% didn’t get richer.
But the dirty secret, I suspect, is not the economic destruction of the US (and UK, and just watch Europe), but the way that most of the international wealth transfer from globalisation has ended up where the money started. James Kynge’s book on China says that only 15% of the end price goes to the Chinese manufacturers, the rest is captured by the middlemen – the importers, dealerships and supermarket owners. America is cannibalising itself and throwing the bones abroad.
INVESTMENT DISCLOSURE: None. Still in cash (and index-linked National Savings Certificates), and missing all those day-trading opportunities.
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