Globalization is a significant cause of financial inequality, which creates a large gap in average household income. World unification is divided into several points, each exacerbating the problem. The first obstacle is de-industrialization since it implies jobs not requiring education cuts. Its meaning lies in the transfer of production of goods outside the United States to reduce taxation. The second point is automation; corporations are replacing human jobs with robots.
An example is the Ford factory, whose managers replaced production operators with robots, thereby depriving themselves of customers since people had no work left to buy a car. The fourth auspicious moment of globalization is free trade, which implies the unrestricted movement of goods and money, not people. Finally, in his article, Barack Obama discusses people’s concerns about tomorrow in connection with rising inequality, which continues to grow.
President shares his thoughts on the people’s worries over the volatile and growing economic divide. He talks about ordinary citizens who struggle with financial problems every day. America is moving away from the system of opportunity for every working person that has been fundamental since the country’s founding. It happens because of globalization, disadvantageous trade, and wage laws for citizens, which lead to political debate and dissatisfaction. Organizations outsource processes and services to pay less for work and production and obtain the benefits.
Consequently, globalization leads to the fact that the inhabitants of America without specialization are left deprived of work. The problem was not acute initially since were two working persons per house, a man and a woman. However, in 2008, when the crisis hit, many were left without a financial cushion. The US economy should strive to ensure equal opportunities since this approach increases the stability of the global economy and the confidence of the people.
The source informs the reader about violations of moral principles and the disadvantage of opportunities. It was written in 2013 when the global economy was growing; however, compared with 1979, productivity increased by 90% and income by less than 8% (Cobbs et al. 482). With the message, the president pushes everyone to think about what is happening. The unpleasant moment is the growing tendency of an undemocratic system. Banks are non-governmental organizations that manage the power as they want. The wealthy population, which is about 10%, is growing, the middle class is dying out, and the poor are only getting more impoverished. This state of affairs can lead to a predominance of unemployment and poverty, which does not contribute to the development of the US economy.
The article is directly related to the lecture since it touches upon the causes of economic inequality in the country. In the 1950-the 1960s, aided by automation, industrial production doubled, and job opportunities declined. As a result, people lost their jobs and could only survive on the income of another more educated family member. An alternative fate was migration, which provided cheaper labor for simple jobs. Later, the government adopted the law to abolish the racial definition of aliens who do not have citizenship rights. It allowed non-white people to live and work in the country on an equal footing with all. Consequently, migration led to a change in demographics, resulting from which it was necessary to revise the wages of newcomers. The economic crisis and migration have contributed to many factors that do not give Americans equal development opportunities.
Work Cited
Cobbs, Elizabeth, et al. Major Problems in American History. Vol. 2, 4th ed., Cengage Learning, 2016.