Globalization is the process by which a business or company becomes international or starts to operate on an international level. Globalization does not benefit the majority of the world’s population, including Canadians, and is slowly growing to increasingly deadly proportions. It benefits the wealthy, which are but a minority in comparison to the rest of the population, and leaves the impoverished ones out of the loop. The unsteady flow of invisible money running in and out of countries has our markets operating like roller coasters. Globalization renders our government powerless and leaves them at the mercy of foreign investors. The negative effects of globalization far outweigh and short term gains.
Diminishing Middle Class
A diminishing middle class seems to be a recurring trend all over first nations, including Canada. The evening news and business reports are bombarded with news of a declining middle class and increase in the number of poor people. There seems to be a pattern of growing poverty that is in relation to a diminishing middle class. It seems as though the shrinking middle is on its way to extinction and the number of poor people is increasing tremendously.
Our society shall soon be composed of two groups, the filthy rich and the filthy poor. This is a direct consequence of globalization. There seems to be a rule associated with globalization that states that a government has to do everything in its power to attract foreign investors regardless of any social problems. In an attempt to attract such foreign investors, governments have tried to maintain a low inflation rate. However, what they fail to mention is that unemployment is the sacrifice that has to be made in order that inflation rates remain low. The increase in unemployment is causing the decrease in the middle class. Another cause of this decline are the growing interest rates that are being driven up to combat the malevolent inflation. As stated in the 2000 Budjet report, “major central banks started to raise interest rates earlier this year.” These interest rates are driving families further into debt. Thus, people are losing their homes, cars, and so much more, all in the name of globalization. The governments priorities are becoming forgotten and replaced with the great game of monopoly.
Volatile markets are yet another price we have to pay for globalization. Three trillion dollars are jumping in and out of countries daily worldwide. This three trillion dollars flows in and out of countries based on trade rumours or a sixth sense. It was this instability that caused the crisis in Mexico in 1994. As companies become more international in scope, they are free to move operations quickly from country to country based on local conditions, greatly improving their power against local governments, businesses and workers. This is turn severely reduces government regulation of trade, investment, labour, health and safety,...