The Benifits of Globilization in the U.S.

If you shop at Wal-Mart and at the same time preach the evils of globalization then you are a hypocrite. Simply put, to use globalization as an excuse for unemployment is pure laziness and not only shows your shortsightedness but also the lack of understanding of even basic economics. It may sound harsh but after this short explanation, you too will appreciate this global economic phenomenon. Globalization, more specifically job exportation, is the reason that American households have access to the cheap goods that surround you as you read this. Basically because of Globalization you can afford that new car, the computer you are looking at, and the clothes you are wearing. Are you interested yet? Then read on.

As Americans we have a deep respect for the value of a day's work, the absolute minimum "respect" that we can pay is called the minimum wage, and a higher minimum wage is excellent-until you take into account a thing called overhead. Overhead is the amount that a factory has to pay for utilities, labor, and other assorted costs; this cost is factored in the final price of every product. Notice how I said labor? The average pay for an American worker is $19.35 an hour, or about $39,000 a year*. When this is compared to the average Chinese factory worker's pay, around $0.17* an hour, the reason for outsourcing becomes blatantly obvious. That isn't 10 times less, 50 times less, it is more that 100 times less per hour.

But you would think that this is plain evidence that Americans are being wronged, and that is completely incorrect. Because you can pay a factory full of Chinese workers on less than the average child's allowance you vastly, greatly, and exponentially, decrease overhead for manufacturing, and as a direct result reduce (greatly) the price on that nice washing machine or pair of socks you just bought.