.comment-link { margin-left:.6em; }

inSUBordination - Wag the Dog

Politics - Uncover the truth behind the news. "When the emperor has no clothes, you have to have the presence of mind and the courage to stand up and say, 'The emperor has no clothes'.”

Monday, December 05, 2005

Globalisation is good for the international companies only!

Mostly international companis and very rich people profit from globalisation. The nations and their inhabitants doesen't nessesarily benifit form globalisation.

Basically for a company all that counts is profit. For big companies this is shareholder value. To increas profit and shareholder value it is important to keep costs low. This can be achieved by paying no or as little taxes as possible and cut the wages of the employees. Strange enough lower production costs do not hinder the companies to increase the prizes they want for their goods. All in all the profit of well managed company with international businessplans will increase due to globlaization.

The loosers are in fact the well developped countries with high wages (expensive labour) and hight taxes wich are needed to maintain the infrastructure and social security. Companies will leave these countries in order to cut expenses and to increas profit. This will lead to a higher unemployment rate. Higher unemployment means less taxes and higher expenses for social benefits.

In effect the big companies are making more and more profit and the rich are getting richer and richer and pay less and less taxes. On the other hand the contries and their average inhabitant will become bankrupt.



technorati tags

0 Comments:

Post a Comment

<< Home

Politics behind the scenes