The world economy is changing. The current crisis is touching every country in the world, including the developing countries. Globalization has meant the world economy that has become integrated, that there can not be a major downturn in the world’s richest country without implications for every other country (Stiglitz, J., 2009). We are inundated with piles of commercial newspapers touting us to buy more and cheaper products. Let us consider what is the cause and consequence of this state of affairs.

Low prices are the result of lower production costs. This is done by downsizing, moving factories to countries with cheaper labor, the replacement of human labor by machines and the use of ever-cheaper materials. The later stages of the savings generated by a concentration of trade in large centers and self-service. Goods purchased in large quantities from suppliers who can offer the lowest prices and the longest duration of payments. It sells low-cost facilities in low-cost locations.

Patent is for sale merchandising – the ability to create such a system of products, shelves and paths in the shop – we subconsciously been induced to purchase as many things that did not originally planned to purchase. More and more professional groups are no longer needed and join the pool of unemployed. They can not find another job, or offers them drastically underpaid. Manufacturers must therefore make price adjustments. How to? Through cost reductions – exempt the following people, installing more machines, apply worse materials. It creates a vicious circle. 

Classical economics bankrupt. Socialism and communism turned out to be duds. Now falling apart before our eyes capitalism. The advanced-capitalist societies are susceptible most amazing is economic, administrative, legitimation and socio-cultural system (actionmotivating) crises (P. Burnham, 2014). Are we next revolution, bands of hungry people looting shops and setting fire to offices? In the long term, probably yes. We are blind tools in the hands of marketing whizzes, bankers and politicians in the service of soulless multinational corporations. Assuming consumer, materialistic values themselves contribute to an increase in unemployment and environmental degradation. We contribute to the inevitable collapse of the world as we know it today.

By: Ewelina Gargala

References:

Stiglitz J., (2009), The global crisis, social protection and jobs, International Labour Review. Available at: http://mdx.mrooms.net/pluginfile.php/198446/mod_resource/content/1/Stiglitz%20The%20Global%20Crisis%20Social%20Protection%20and%20Jobs.x%20copy.pdf. [Accessed 8 December 2014].

Burnham P., (2014). Depoliticisation: economic crisis and political management. Available at: http://mdx.mrooms.net/pluginfile.php/198447/mod_resource/content/1/Peter%20Burnham%20and%20the%20state.pdf. [Accessed 8 December 2014].

Cole M., (2008), Work, Employment & Society. Available at: http://mdx.mrooms.net/pluginfile.php/198449/mod_resource/content/1/Cole%20Meaning%20of%20Unemployment.pdf. [Accessed 8 December 2014].

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