Peter Tal

Consulting Engineer, PTIC
  • France

Recent Comments

Apr 23, 2019

There is a FACT - middle class is shrinking. It was proven independently. But we can keep arguing on the causes which lead to this result. The causes could be divided in major and minor causes having a stronger or weaker impact on the result. In my view, since very few middle class climbed up the major factor is that a certain amount of middle fell into lower and poorer class. The main factor influencing this income drop is most likely caused by the national and international economic factor, shrinking employment, automation and to a certain degree, climate change.  

May 08, 2018

Unfortunately, the article brings nothing new to the table other than the old ideas. It didn't address how "rethinking trade and globalization" would minimize the social and income gaps and would benefit more people. 

Presently, the globalization benefits the large corporations rather than those who work for them below the executive levels. The situation is quite similar with the benefits of weapons manufacturers from a war or conflict - on one side people die while the industry prospers. In the globalization process, few people become very rich with much more fall into poverty.

The unfairness built-in the globalization, opportunistic business that creates the social and economic gaps, regional unemployment, migrations raise and fall of nations is a direct result of playing with unequal national and geographic rules. Simply put, should all countries - for the sake of the example - China and the western countries (as well as all the western countries) have the same identical regulations such as currency rules, equal salary for same work, equal taxation, health, benefits, housing, etc., there would not be any incentive to relocate industries and eliminate jobs for a lower cost. The profitability of making an iPhone in China or USA for sales in US, would be greater for local manufacturing as it would be for clothing and other products. Trade would be fairer, economies balanced and trade deficits would be minimal.

Competitiveness should be achieved by innovation rather than exploitation of opportunistic gaps. WTO proved being an empty shell that allowed, with the support of major interested corporations, building an unfair global system that benefits only its supporters. Trying to justify the situation without introducing major regulatory and enforcement changes would only create more poor people, more discontent with political turmoil with raise of extremism.