Economic Globalization Part I

As we transition into a new year, this may be an apropos time to speak about the transitioning global economy. Over the last decade or so, we have seen a lot of advancement in the market places of countries who have not been known for their robust economies. As trade grows, as small powers become more proficient, as non-players begin to modernize their economic structures... how will this affect the United States economy?

Anytime you talk about globalization, the word that (I would think) comes up for a lot of people, and definately comes up in my mind is outsourcing. Simply put, outsourcing is where a corporation takes part or all of its business overseas for that companies financial benefit.

Before I go any further, let me first qualify a few things. On the whole, I think of America as suburban/rural country, with about 10 city-states dispersed, mainly on the coasts. City-states, in the old world history since, not necessarily a specific land mass with easily defined boundaries, but a general description of a densely populated area, relative to its surroundings. I would consider the Dallas-Houston-SanAntonio triangle as one large city state. Obviously, the vast majority of Texas would be OUTSIDE of that boundary, but the majority of the states population would be part of that densely populated area. There are a couple in California, Florida, so on... and so on. Compare that to states like North Dakota, Montana or Idaho. All with relatively large land masses, however, with total populations smaller than most metropolitan cities. [More people live in New York City than those three states combined!]

Anyway, prior to the turn of the 20th century, the infrastructure of this nation was really poor. Now, the United States is EXTREMELY large, and would, of course, make any infrastructure project a lot more difficult than smaller countries like England, France, or Spain, and definately harder than smaller countries like Japan, South Korea, Singapore or Switzerland. However, there was an event that not only stifled Europe... who was king of the world, but also allowed us to modernized ourself like never before.

Whether or not you agree with the description, they were called the Greatest Generation for a reason. For anyone unfamiliar with the term, that described the Americans of the late 30's and early 40's who transformed this nation during the second World War. The globe as a whole was still struggling to come out of the calamity that was the economic crash of the 1920's. For history lovers, it was the blockades and reparations from "the Great War" coupled with the downturn in the stock market, that helped a little known man rise to power in Germany in the 30's. He claimed to know the culprits (Jews) and have the solution, which would then trigger the Second World War. It is quoted that about 40 million people died in the first World War and about 70 million during the second!

During the 1930's, Franklin D. Roosevelt (arguably the best president ever, 2nd on my list) put into motion his "New Deal" which noticeably INCREASED the size of the government (and all the Republicans cringed!) while creating reforms to the United States that would change its people and its economy. One such would be building up our infrastructure, dramatically improving the highway system in our country. It created a lot of new jobs and put a lot of people to work, helping to create a middle class in America, putting people back to work, boosting the economy.

While this was going on in America, Germany was... you know... being Germany. I'm hoping everyone knows the story, but just in case. As Hitler rose to power, expansion began. Newly independent (after WWI) Poland was the first to be conquered. As Germany began to expand its territories, rather than fighting him early, British PM Neville Chamberlain tried to appease Hitler and let him have what he had already taken. There wasn't much resistence until Winston Churchill (former Naval commander) took over as PM of England. By this time, France was falling (dont they always?) and Churchill was sending numerous letters over the span of several years to FDR asking for his assistance.

You may be thinking, what in the world does ANY OF THIS have to do with globalization in the 21st century?!! All in due time...

As Churchill continued to plead with Roosevelt, who was dealing with a nation with an Isolationist world view, the New Deal was trying to modernize our country.

And then it happened. Let me back up. Even BEFORE Germany's aggression against Europe, the Empire of Japan was trying to expand its territory as well. Is that the excuse megalomaniacs always use?

"We dont have enough room, we just need to expand. Dont fight this. It'll be better for you too!"

The Soviets had already been fighting the Japanese prior to WW2 and signed a peace treaty to avoid fighting on two fronts. I guess... only CERTAIN nations can fight on two fronts. Perhaps thats why they're called the Greatest Generation. So, with the peace treaty with the Soviets signed, Japan turned towards China, the Phillipines and other South Pacific island-states. Several countries, particularly the US and Britain levied costly sanctions against Japan, who claimed to be trying to free the Asian continent from European exploitation and influence.

And then it happened. The Japanese, WHO THOUGHT THAT THE US WAS YEARS AWAY FROM BEING MODERNIZED ENOUGH TO GO TO BATTLE, performed the sneak attack on Pearl Harbor on Dec. 7, 1941. Soon after Germany declared war on the US.

http://upload.wikimedia.org/wikipedia/commons/d/dc/Ww2_allied_axis.gif
[For anyone who cares, this .GIF file map shows the progression of the war: Blue=Allies, Red=Soviets, Black=Axis Powers in Europe, Japan in Asia, Grey=Neutral Nations]

Everyone looked for this from George W. Bush after 9/11... after the attack on Pearl Harbor and the official declaration of war from the US Congress, the president made an appeal to the people of the United States. We were already in a transition from a large rural to more metropolitan nation, but FDR inspired every person to pitch in and do his part.

http://womenincongress.house.gov/images/essays/essay2/Rosie_Riveter.jpg

http://www.jerryjazzmusician.com/pics/ey101.jpg

http://www.mtsu.edu/~kmiddlet/history/women/gif/wwi-seeds2.gif

http://www.loc.gov/exhibits/treasures/images/at0071.2s.jpg

These are just pictures of women (not known for being a part of the American workforce in the 30's) doing their part to help the country in the build-up to war. Its imagery like this which earned the World War 2 generation their moniker, one that the American people of today were looking to recapture after 9/11, but we did not. The war needed funding and there were a lot of people who bought War Bonds, to help the government fund the war. Something that would seem unheard of today.

http://www.sparehed.com/wp-content/uploads/2007/08/abnerww2_resize.jpg

A lot of the comics (like Superman and Captain America) had political themes to them, regularly they'd be fighting weird, almost cultish, secret Japanese or Germany societies, and on some comic covers, it would just EXPLICITLY tell you to support your country by buying war bonds!

http://www.coverbrowser.com/image/action-comics/58-1.jpg
[Superman prints newspapers supporting buying war bonds]

http://www.coverbrowser.com/image/captain-america/1-2.jpg
[Hitler takes one from Captain America right on the chin. Ouch!]

Now, I mentioned that 70 million people died during World War 2. Nearly TWICE the number that died in the first world war. The entire continent of Europe was devastated. Prior to our involvement, there were the nightly air-raids on London, leveling large portions of the city. There was the battle of Normandy where the Allies re-took France, and then there was Poland, and finally Germany, not to mention the battles on the other side, between Germany and the Soviets, leaving many casualties, especially in those harsh USSR winters.

So while most of the world... Britain, France, Poland, Germany, Russia, Japan, China, the Phillipines... to name a few!... was trying to recover from the greatest global conflict in world history... the United States, who had no battles on its homeland, emerged in the late 1940's as the world's lone economic and military SUPER power.