Wednesday, February 8, 2017

Capital Mobility

Capital Mobility is a more caustic neoliberal force than the more intuitive trade in goods by distant producers.

It seems inevitable today, but foundational economists Adam Smith and David Ricardo assumed no capital mobility.  Capital mobility changes everything.

With capital mobility, highly automated factories and procedures, inexpensive global transport, and so on, the global wealthy can drive an infinite race to the bottom in wages.

A good economy is one that is good for everyone, this was not what any economist would admit to enabling.  Capital mobility was hardly considered into the the 1960's.

As well, financial de-regulation (began with Carter, accelerated under Reagan) further propels the global race to the bottom in wages.

Of course, mainly what so-called trade agreements are about are corporate rights to supercede human ones, in the interest of greater and greater profits, and lowered quality of everything, including life.

Not really trade at all, but things that, help improve capital mobility.

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