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Globalization Factor Simplified and Submitted to the White House.

Living in a contradictory world    Living a little more quietly
GM Shock - System Failure    Prescription for current situation
Globally Adjusted Economic Theory and a Concept of Country Life Cycles    
Analysis of the Current Global Economic Situation
Three Culprits and a Shadow in global economy Chinese trap - Dangerous Protectionism
Keynesian's Supply Side Economy updated Simple version of Keynesian's Supply Side Economy updated
Where are we going? What are we looking for? Globalization Factor.
Globalization Factor Simplified and Submitted to the White House.
No more deregulations, please! From blind-individualism to conditional individualism!

From Free Economy to Conditional Free Economy! Solve both climate change issue and economic issue at the same time!

We need an Earth Government!

This memo was subitted to the White House as a comment through its website on 12/29/2011 by Hiroshi Morita.

Globalization Factor.

Nothing is wrong with economic theory.

Everything is wrong with our implementation of it.

I. Background:

I would like to point out fundamental issues with respect to current economic situations influenced by globalization factor as follows:


II. Economic premises::

As Dr. Auerbach explained to me in Macro Economic class at UCR, economic theory only works under certain conditions.


1. Perfect Information Flow:

Good example of it is Lehman Shock.

When critical information got intentionally and technically hidden, we are forced to misjudge the true value of commodities.


2. Free Movement of Labor Force:

Since many factories moved globally, labor force is supposed to move globally too, that is not happening right now.

This is one of the reasons we have high employment rate in industrialized countries.

Young people should be able to find a job freely in global market without any restrictions such as working visa, etc.


This is also one of the reasons we have an issue for population over-growth.

In developing countries more jobs have been created without any inflow of labor force from outside, this situation creates enough room for having many babies.


3. Free Movement of Exchange Rate:

China is controlling exchange rate.

Since China has the second biggest economic power, it is not acceptable to fix or control exchange rate for its favor.


4. Avoid Monopoly:

When monopolistic condition exists, market does not function properly since we cannot sustain fair competition.

Forcing global anti-monopolistic regulations is necessary.

- Monopolistic Power of Fund Money:

- Monopolistic power of global companies.

- Since we do not have global government yet, nobody effectively controls monopolistic situation in global market.


III. Time Lags and what we should do about it:

In addition, we have some time lags or misconception as follows:

1. Concept of EC(EU) is already obsolete:

Concept of EC is one step backward from concept of globalization and thus it is already obsolete.


2. Concept of TPP is even dangerous:

This reminds me of the condition before WWII before 1939, when protectionism prevailed.

TPP is dangerous in two-folds.


First, TPP works like protectionism for the rest of the world.

Second, TPP will become monopolistic power since it could represent almost 40% of economic power depending on contents of members, though.

In other words, the rest of the world will suffer at the gains of TPP members, which may lead to bankruptcy of Greece, for example, and may cause world depression.

IV. Warning and My Proposal:

Please do not implement TPP for a while.

In other words, please freeze TPP for 5 to ten years, and please go directly to globalization or global government, or global society.

Although, movement of TPP is an inevitable or a reasonable step toward globalization, it should be best for us to skip this stage since it is one step backward from globalization and will work as protectionism for the rest of the world.


Hiroshi Morita December 29th, 2011.

The above memo was condensed due to volume restrictions at the White House website.

photo of HM


- Receipt of the above memo was confirmed by the White House in a way of auto-repsonse as follows:


December 29, 2011

Dear Friend:

Thank you for taking the time to share your thoughts with me. I value your comments and inquiries.

I greatly appreciate the outpouring of messages from Americans across the country and around the world.

Some comments are supportive, others are critical, but all reflect the desire of Americans to participate in a dialogue about our common concerns and challenges. ・・・・・・・・・・・・・・・・.

Thank you, again, for writing.

Sincerely,

Barack Obama





Living in a contradictory world    Living a little more quietly
GM Shock - System Failure    Prescription for current situation
Globally Adjusted Economic Theory and a Concept of Country Life Cycles    Analysis of the Current Global Economic Situation
Three Culprits and a Shadow in global economy Chinese trap - Dangerous Protectionism

Keynesian's Supply Side Economy updated Simple version of Keynesian's Supply Side Economy updated

Where are we going? What are we looking for? Globalization Factor.

Globalization Factor Simplified and Submitted to the White House.

No more deregulations, please! From blind-individualism to conditional individualism!

From Free Economy to Conditional Free Economy! Solve both climate change issue and economic issue at the same time!

We need an Earth Government!

Link English Site    Buzzle.com

HM blog

地球を救え Save the Earth
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