There is no doubt we are a global economy…this virus shows that clearly

https://www.bloomberg.com/news/articles/2020-04-08/a-brutal-march-for-trade-portends-depth-of-economic-pain-ahead?utm_campaign=news&utm_medium=bd&utm_source=applenews

Tha article points out that we are in a global recession and the only way out is probably a global effort.

All countries and all businesses are interconnected and dependent upon a network of both suppliers and buyers. Car registrations are down in Germany, that affects parts from China that buys pork from us so we can export software…

We knew all this of course. But a system of trade deals, tariffs, immigration, banking made both billionaires and burgeoning labor classes in developing nations. In the US wages were kept in check but credit flowed freely.

Now a bug that needs no visa or any immigration rules or tariffs has crimped the hoses.

11 thoughts on “There is no doubt we are a global economy…this virus shows that clearly

  1. RE: “Now a bug that needs no visa or any immigration rules or tariffs has crimped the hoses.”

    To put the observation in perspective, remember that we lived in a global economy 700 years ago, too, during the black plague. The common theory is that fleas were the vector for that disease, and that the dangerous ones originated in Central Asia.

    The lesson I take from this is that self-sufficiency, independence and decentralization (via liberty) are far more than mere moral principles. They are practical necessities.

    Like

    1. …”we lived in a global economy 700 years ago, too,”…

      Let’s see. 2020 minus 700 equals 1320. OK. How many people were living in North America and trading with the Europeans?

      700 years ago the global economy was primarily in Europe. Your comparison fails on the math alone.

      Like

    2. “When goods don’t cross borders, Soldiers will”.

      Or, redefined more succinctly:

      “Economic bargains which are likely to be kept are preferable to political agreements which are likely to be broken.
      If soldiers are not to cross international boundaries on missions of war, goods must cross them on missions of peace.
      Unless shackles can be dropped from trade, bombs will inevitably drop from the sky. ”

      Otto T. Mallery (1881-1956) who wrote a book Economic Union and Durable Peace (Harper and Brothers, 1943)

      Self sufficiency sound so good on the surface, until it isn’t. We are fortunate to have one of the most varied and resource rich landmasses in the world. Yet there are things we don’t have or have enough of for modern society.

      And, as climate and weather patterns shift, for whatever reason, we may have problems of supply in food production.

      Finally, if we divide the world into “us and them”, and “them” has a shortage of necessities and a surplus of people, we become likely targets for invasion.

      Better to encourage robust trade, economic development, exchanges of ideas as a global entity than to divide the limited space of our planet into independent pieces.

      That is why I see this virus as a wake-up call for internationalism.

      Yes, eventually, there will be cultural dilution and intermingling. But at the same time, that would be dulling the sharp blades of ideological wars.

      And if most nations have prosperous, thriving populations, there are fewer reasons for conflict other than ideological. Well fed, busy peoples are not going to be enthused about fighting over whose God is better or what political structure is preferable.

      Capitalism is based on the notion of self-interest as a driver of ideas and thriving markets. The same should apply more broadly to a global perspective of the self interest of prosperity rather than political and/or religious dispute as a motivator.

      We have a ways to go, of course. But people are dying all over the world from the same virus. Whether you are a Christian, a Muslim, an atheist, and animist, a capitalist, a communist or an anarchist, our bodies suffer the same way with disease.

      So we have a common ground to start from. Not the one we would have chosen, perhaps, but common ground nonetheless.

      IMHO

      Liked by 1 person

      1. Your logic escapes me. You seem to recognize that international trade and travel spreads infectious disease, but you categorically want more of them.

        Like

        1. No.

          The point was much simpler. The fact is we cannot seal ourselves off from the world, and even if we did try, we would still be vulnerable for pandemics.

          So we deal with pandemics globally, not country by country.

          And if you think sealing ourselves from the rest of the world is a good idea, then see how long that lasts as I outlined.

          Liked by 1 person

        2. RE: “we would still be vulnerable for pandemics”

          Is that a fact? How would a “sealed country” be vulnerable to pandemics?

          Like

          1. RE: “How can you seal a country?”

            Trade and travel restrictions are the standard approach for infectuious disease. Plus, both science and history show that they work.

            I hope you are not going to try to say that nothing can stop a pandemic, because that would be both illogical and factually incorrect.

            Like

          2. Pandemics do stop, of course. Immunity and dead bodies in a race to the finish.

            But by definition a pandemic is a universal epidemic.

            Trade and travel restrictions are economic disrupters. And their effectiveness is only as good as their thoroughness. Ours against China was almost moot since it still allowed 40,000 arrivals with spotty checks at terminals.

            New Zealand’s was effective. But they are a small island nation. Yet the economic impact is huge since tourism is about 40% of their GDP.

            Better to have a system where the nations cooperate with a permanent international presence of a few thousand epidemiologists, etc, around the world to catch any outbreak immediately.

            Keep political and economic pressures out of it.

            Liked by 1 person

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s