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Everything is very complicated nowadays. When one thing changes, it impacts so many...
Topics: Social Sciences, Economics, Globalization
Everything is very complicated nowadays. When one thing changes, it impacts so many other things. If regulation to protect the environment is implemented, it increases the cost of doing business which can result in increased prices to consumers or companies looking overseas to save some costs resulting in loss of jobs domestically. This is just one example of how one change can have a ripple effect in the economy. Do you think that things will become more complicated in the future or will there be more of a balance?
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First of all, I do not think that the two choices are complications and balance. I think that the two choices are probably complications and simplicity. Simplicity comes when the various parts of the economy are not very interconnected. Given that interconnections make for complications, I am certain that our economy will become more complicated in the years to come.
The situation that you describe comes about because so many things in the global economy are interconnected. If the US economy were isolated from that of the rest of the world, government regulations would not lead to jobs going overseas. (There is no way to prevent most kinds of regulation from making costs rise.) Because the world economy is interconnected, regulations can lead to job loss.
The question, then, is whether globalization will continue. I see no reason to think that it will ebb in any major way any time soon. Globalization will continue because it is the best way to ensure that products get made at the lowest possible prices. People like having material goods that are cheap and plentiful and would be unhappy if we isolated our economy and made things more expensive. We are, for better or for worse, in a world where economies are interconnected and complicated.
Posted by pohnpei397 on September 27, 2013 at 3:26 PM (Answer #1)
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