Listening to: Can I Have It Like That - Pharrell Williams

Doogie Howser forwarded this Newsweek
article to me. It discusses the impact of globalization on the US and particularly
the effect of a huge trade deficit and low savings:

For most of the last 50 years, globalization has been a win-win proposition, making
America richer while lifting hundreds of millions in the developing world out of poverty
and despair. Recently, however, it has begun to operate differently, undermining U.S.
welfare while creating imbalances likely to end in a global economic crisis.

The parallels with NZ are disturbing. While the exogenous factors for the NZ are different
the behaviours (eg. Air NZ out sourcing high skill jobs to China) and the risks (economic
recession bought on by the effects of high trade deficit and low savings) are the
same.

This entry was posted on Wednesday, November 30th, 2005 at 8:21 pm and is filed under Business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.