Create confusion

Create confusion

After posting a previous article “we are the good guys”, ultra-globalists came up with a counter argument. That is another proof that they are devious. Whenever the argument is not in their favor, they try to create confusion around the issue so people will be disoriented. They will not win the argument but they will not lose it either. It will end in a tie. We want to expose their evil ways so people will not be fooled by them anymore.

The argument that globalization should be credited for GWP (Gross World Product) growth is a false one. There has always been a steady long term growth trend in the World’s Product accompanied with business cycles. A comparison should be made with what the situation would be without the globalization process. Such a comparison is impossible since we do not know how things would be otherwise.

They did not appreciate our kindness. We gave them a big present. We accepted that open markets around the world may cause small growth gains because our main point is the equalization of incomes among countries. So we said to them; “You claim that there are gains in world product growth. OK, we will not argue about that. We give it to you as a present. That is not our main point.”

Here is their evil counter argument to our main point. Why this did not happen in EU? It was one of the main promises that politicians gave in poorer EU countries. In theory this could have happened. There would be a slight decrease in richer countries and a slight increase in poorer ones. Income differences between European countries are not huge like in the world. Also the proportion of poorer countries is not 6 times more.

There are certain assumptions though. EU market had to be autonomous from the rest of the world. This was not the case. EU has only 18% of GWP. The rest of the world has five times more. In an economy, there are several factors that affect the outcome at a certain time. There were very strong forces from trading with the rest of the world. In the case of the world there is not another market in the moon. The world market is autonomous.

In theory a German factory should move to Greece since the wages are lower. In reality, it moved to Turkey or China. In addition, tariffs and duties are not the only barriers. There are several others like language, legal, accounting and tax, cultural differences. Also, evil Brussels bureaucracy controlled matters and moved them towards the direction that suited to them. German and French politicians wanted to have their voters happy at the expense of voters in other countries.

Then they came up with the same old story, the competitive advantage fairy tale. They make up things and try to present them as valid. That is another one of their devious ways. Too much esoterism can make lose sight of reality. Technical expertise and looking at the facts is more important.

This is the first and the last time that we will respond to their challenges because we will not fall for their devious tricks. We do not want to turn to a debate between economists but we want to make things clear and simple to the average voter. The average voter should keep in mind the following in simple terms. Open markets around the world will cause a sharp drop of incomes in advanced nations, increase income differences within countries and eliminate middle class.