| Based on my some forty years study and | | | | developing countries. The major items in |
| research relating to socio-economic development | | | | production cost are wages, health care services |
| in a variety of societies, it is my deep belief that | | | | and retirement benefits. In order to stay |
| capitalism has reached the point of its own | | | | competitive in the world market, the cost in all |
| destruction moving the world toward a more | | | | these three areas has to be cut down continually |
| equitable standards of living. Two factors are | | | | and ultimately substantially. Gradual reduction in |
| prominent in this incredible, irreversible and | | | | wages and other benefits will place some 90 |
| unavoidable process. These are the electronic | | | | percent of the American families in precarious |
| information and communication system particularly | | | | conditions. The purchase of, so called, luxury items |
| the Internet and the rapid development of free | | | | will be sharply reduced and a part of the income |
| trade or globalization process. These have created | | | | will be channeled to necessary items such as |
| a tremendous disequilibrium in production and | | | | health care and some saving for retirement. |
| marketing of goods and services in the world | | | | Purchase of multiple items now practiced nearly in |
| market. While hourly pay for a skilled worker in | | | | every family such as two or more TV sets |
| the United states is around $20.00, the equivalent | | | | cameras, particularly clothing will be brought to a |
| of the same labor is about $0.80 per hour in China | | | | minimum. As a result the volume of consumption |
| and around $1.80 in India, two massive | | | | nationwide will substantially decrease forcing the |
| communities with a combine population of 2.4 | | | | producers to cut production accordingly. The living |
| billion with advanced technology and millions of | | | | standards will come down to a modest level |
| skilled workers and professionals. These countries | | | | leading toward a more equitable life. Reducing |
| are now capable to overtake the process of | | | | workforce will not solve the problem when a |
| production of goods, services and marketing for a | | | | substantial number of workers would be out of |
| fraction of their cost in the United States and | | | | job. The only way these countries can peacefully |
| Europe. They produce the same quality of goods | | | | and democratically survive would be through a |
| even in some cases better that those produced | | | | democratic employment process by the |
| elsewhere. Considering only the labor cost, an | | | | application of the principle of equality of |
| enormous pressure is already imposed on | | | | opportunity at work place, resulting in total |
| production firms operating in the global markets. | | | | elimination of the layoff or firing of the |
| Jobs are being rapidly outsourced to developing | | | | workers.(1) The result would be substantially |
| countries with ample skilled resources, to China | | | | reduced pay but full employment.(2) |
| and India in particular. Besides cheap labor, there | | | | In developing countries, on the other hand, based |
| are other substantial benefits inducive to | | | | on gradual advancement in societal consciousness, |
| movement of production to these countries. For | | | | there will be an increasing demand for better |
| example, there is a minimal or no health care | | | | wages and benefits. Wages will gradually go up, |
| cost, particularly in those countries with national | | | | work environment will improve, health and |
| health care programs, whereas this is a very | | | | retirement benefits will be established. As a result, |
| significant cost of production in the United states; | | | | the standards of living will improve toward a |
| there is no or a little government regulation of the | | | | modest level for most of the citizens. |
| production particularly concerning the work | | | | The global keen market competition, particularly |
| environment, hours of work and child labor; there | | | | between the United States, Europe and Japan, |
| is no or a minimal, often loosely regulated | | | | while it would require continuous cutting the cost |
| retirement benefits imposed on producers. | | | | of production and marketing, it will also |
| Consequently, advanced countries have to reduce | | | | necessitate continual cutting of the profit margin in |
| the labor cost by reducing pay per hour, improve | | | | order to be able to compete in a very tight |
| automation and lay off workers in order to | | | | market. Ultimately, it will be a matter of survival |
| remain competitive in the world free market. We | | | | for all production firms. Producers will be satisfied |
| are already seeing such moves in some industries | | | | if they come out even with no profits and no |
| in the United states such as airlines, production of | | | | losses. The production firms will then tend to be |
| computers and other electronic devices, | | | | and act as non-profit organizations. Income from |
| agricultural sector, etc. Now developing countries | | | | the production would offset the wages, benefits |
| particularly China and India are rapidly advancing in | | | | and other costs. Though the profit motive will still |
| the global market. $1.00 stores are now all over | | | | persist, but opportunities of profit will not be there |
| the United states. You can practically find most of | | | | anymore. That will be the end of capitalism as we |
| your needs in these stores. Nearly all goods sold | | | | have known. The alarming fact for the capitalists |
| are made in developing countries particularly China. | | | | is that, because of world free trade market, this |
| A plier which is about 8.00-12.00 if made in the | | | | process of change will be irreversible and will not |
| United States you pay one dollar, nearly the same | | | | take too long. I believe it will not go beyond four |
| quality but made in China. The same goes for a | | | | to six decades.(3) |
| wrist watch-calculator or ladies and men hear | | | | References: |
| coloring. I recently bought a prescription glasses | | | | 1. See the theory of equality of opportunity at |
| for reading for $1.00. Not only it fit my eyes | | | | Rezazadeh, Reza. Technological Democracy: A |
| perfectly, it was also beautifully and professionally | | | | Humanistic Philisophy of the Future Society, New |
| designed and produced. The price, of course, | | | | York:Vantage Press, 1990, pp.188-209; |
| included the material and production cost, transfer | | | | Technodemocratic Economic Theory: From |
| overseas from China to the United States, the | | | | Capitalism and Socialism to Democracy, Platteville, |
| middleman's profit and finally the retail store profit. | | | | WI: Eternalist Foundation, 1991, pp.221-248.; and |
| Looking at the glasses I wondered how in the | | | | Passage to a Just Society: Secrets of Democratic |
| world this could be possible even with $0.80 per | | | | Life, leisure and Happiness, Xlibris, 2003, |
| hour skilled labor cost! | | | | pp.203-208, |
| However, the effects of free trade and | | | | 2. See the concept of shared opportunity at |
| globalization, despite being harsh on developed | | | | Technological Democracy, op. cit.,pp.198-205; and |
| countries, is promising for the rest of the world. It | | | | Technodemocratic Economic Theory, op. cit. p. |
| will force advanced countries of the West and | | | | 186; and Passage to a Just society, op. cit. P.205. |
| Japan, first to cut the production cost and then | | | | 3.You will find detailed discussion of globalization |
| reduce the volume of domestic production as | | | | and disappearance of capitalism in my writings |
| they transfer their production systems to | | | | particularly in the above cited books. |