In an excellent short article today in the NYT, Daniel Gross makes the point that higher corporate profits for the first time have not resulted in higher wages.This has been true not just for the United States,but also for Germany,France and Japan.This is one effect of globalization.Because it is now possible for corporations to invest their profits in many countries around the globe, the US looks to be the loser overall.And it is also apparent that corporations no longer see themselves as attached to any single country.
While corporations have realized the New Economic Order for what it is,many ordinary citizens are still under the illusion that being born an American or German or a Japanese automatically entitles you to a higher standard of living.The steady erosion of living standards and the emigration of capital to countries with low wage rates will continue.
The battles being waged at GM and Delphi are part of the same war against people in the high wage countries.It is obvious that the days of labor’s bargaining power are ending.When GM and/or Delphi fold, we can usher in the dawn of twenty first century
Global Capitalism.Those who thought that they can expect high standards of living by being born in America are going to be in for a rude shock.
