This book is a reality check about globalization, it's current effects and projected future effects. Written from the viewpoint of a global journalist, Gabor Steingart, in an easy to read journalistic style and backed up by the newest data available.
The cover says you can expect the book to be compelling, controversial and thought provoking. It is all that and more. It is a chilling dose of reality and provides a good look at the history and present economic status of each country.
Publisher: McGraw Hill
ISBN 978-0-07-154596-9
Hardcover - Price $29.95
The author does a brilliant job in his assessment of the beginnings of a new world order - no, not wrestling. After preparing his case, substantiated by thorough research and analyses he arrives at a rough outline of three possible scenarios.
The Shock Scenario: The classic worst case scenario, a global economic crash.
The Asia-Above-All Scenario: When the American Dream Turns to Dust.
The American Renaissance Scenario: How to Remake History.
Sure, I'd love to see the American Renaissance scenario and the author is quick to inform us that it is not too late to take action. He suggests that our U.S. politicians need to rally and admit the truth to the citizens of the United States. To those who are already pushed up against the wall, have lost their middle class standard of living and to those who are still benefiting from globalization in it's current state.
From the cover:
"...outlook for the West: Our prosperity and wealth are disappearing faster than ever, and with them our political power and long-held democratic ideals."
A mutually beneficial, economic alliance with Europe is an idea whose time has come. Free trade in it's current form, our ailing welfare and health care system - in it's current form, each represents a threat to our economic survival in the age of globalization. Southeast Asia is relentless in the pursuit of the establishment of a New World Order. Throughout the book Gabor Steingart offers solutions, ideas and motivation for political and economic leaders to step up and face the ugly truth.
China is willing to do whatever it takes, are we?
Politicians must do the same thing major corporations have already done, they must become global players. Many reasons are discussed about why it would be a good idea for America and Europe to work together on leveling the playing field for their own workers and corporation bosses.
Steingart argues that protectionism is not the fundamental idea behind trade policy, those who isolate themselves end up losing their wealth. Up to now both Brussels and Washington have held the position that the state should keeps its fingers out of the flow of trade.
Corporations speak about win-win, but truthfully is that really what America and Europe are currently experiencing? He illuminates the state of the economy in the United States and Europe in great detail.
Here is an excerpt of the book regarding global trade policies:
Step 3: Let's level the playing field - page 242
The state as manager of international trade is not an entirely pleasant concept, and yet, it is a necessary concept. Although the state does not for the most part intervene in trade in the United States, it certainly does so in India, Singapore, Japan, Korea, Malaysia and especially in China.
The state has a strong presence - as the biggest promoter and protector of exporting industries - everywhere in the world where the most spectacular successes are being celebrated today.
As a result, the West today faces a phalanx of controlled marker economics for which it was not prepared. ......cont'd page 242
The Chinese economy is irrigated by a banking system that does not operate under the criteria of profitability. Tariffs surround entire industries like protective walls. As a shoe exporter, China has no interest in importing shoes. To preserve the status quo, the domestic market is sealed off against countries that produce even cheaper shoes with a 27% percent price markup.
Here is a little morsel of information which sheds a bright light on the Chinese predatory approach to "free trade" - a unique perspective.
Excerpt from page 242:
What is most obvious about China is the resoluteness with which it defends its interest. In the summer of 2006, the World Trade Organization (WTO) was confronted with a new Chinese customs law that pressures the Western auto industry to outsource all of its production to China.
Yes, you read correctly! I thought it was bad enough that the West has to deal with piracy of their inventions and patents ranging from entertainment to computer software or illegal copies of products, including motorcycles. Piracy is rampant in Southeast Asia, but widely tolerated - at significant cost to the western corporations.
...cont'd from page 242
Under the law, manufacturers who assemble more than 60% of a vehicle outside China are slapped with a 25% percent punitive tariff on parts they import to China. The Chinese leadership hopes to use this strategy to force foreign automakers to shift their entire production to China or purchase their parts from local suppliers.
This sort of punitive tariff is strictly prohibited under the rules of the WTO ..........China is aware of this, but ...........
This book is amazing in it's clarity and if I have come away with anything at all from reading this book it is that it confirmed my worst fears. I agree with the authors statement,
"The West seems spellbound as it observes the goings on in Southeast Asia. When it comes to economic policy, today's America is a pacifist, uneasy at even having to put up a fight." (page 243)
I can tell you that I was greatly disturbed when I read the author's harsh views about the emergence of a New Underclass in the U.S. - never mind the erosion of the Middle Class, or that there are projections of 40 million white collar jobs leaving the US in the next wave of attack. I learned a great deal more about the recent world history of both India and China, or even why a man like Bill Gates feels compelled to spend millions on educating our children.
If you have ever wondered about whether globalization is a good thing, who are the winners and losers both domestically and globally and what chance America has in the New World Order - then this book is a must read. It is not a one sided story, but includes scenarios as to what calamities may occur in China and Southeast Asia, as well as the potential of clashes between the haves and have nots in that area of the world.
Bottom line for me after reading this book is, "Globalization needs a regulatory framework." There is hope and there are solutions for the West. Without a doubt, the best book I have read in a long time!
Dr. Henry A. Kissinger, former U.S. Secretary of State called this book "A lucid and compelling reality check."
I couldn't agree more!
About the Author:
Gabor Steingart is an internationally bestselling author and the senior correspondent for Der Spiegel in Washington, D.C., where he lives with his family.
His op-ed pieces are published in the Wall Street Journal and European Afairs.
To reach the author and join the discussion, visit gaborsteingart.com
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Comments: 24
Katherine - this book is so chock full of topics and it actually set a couple of my beliefs on it's ear. I also want to say a lot more on this subject - because I agreed with so much, but I also was a bit taken aback to see some of my thoughts and observations in writing.
I loved the history part - I concurred on the history of the West and I was delighted to fill in the blanks on some of the more recent history of India and China.
He made a great case - but I really want to discuss this more, so I am hoping Connie and Christine who also did a review will do a chat with me.
I'll be checking in with both tomorrow - maybe we can set a date and time.
Amanda - this book crystallized a lot of the information I was already aware of, but there was so much more. All I can say if you have any questions about globalization at all - get this book.
It took me a while to read it, because I wanted to understand and I know already this is one to re-read.
thanks for reading it... Blessings to you... i miss you... when is your trip???
love and hugs...
Winnie The Pooh Glitter Pictures
This book was definitely the most thought provoking book I've read in years. Anyone who cares about our failing economy and what our status is in the world NEEDS to read this book.
In some ways, I think that it took an "outsider" (non-American) to show us about ourselves, much like DeTocqueville in Colonial times.
One thing that made this book so different and convincing is that he has travelled all over the world and it is abundantly clear he knows whereof he speaks.
The industrial base. That argument actually set my belief on it's ear. It's amazing how you buy into the popular beliefs - "we don't need one, it's just part of a natural development toward a service industry." The fallacy shown already is that Southeast Asia - in this case India - readily took away a good part of our service industry and is working on finding ways to take over more sectors. ^The attack on our way of life continues and we just sit on the sidelines - mesmerized - while the business people are stuffing their pockets with their profit and the shareholders are laughing their way to the bank.
He should have called it the selling out of America by the Elite:)
Anyway - the best thing about the book was that we still have a chance.
He made it clear, that heck yes we need an industrial base and cannot afford for our entire industrial base to be taken over by other countries.
It makes us dependent and easy prey - just look at what China has demanded already from the WTO - outrageous, but then again - if we have no industry left, we will pay the tariffs and we will agree to whatever they dictate. I had meant to include a paragraph about that following the trade excerpt.
I was surprised to learn that manufacturing around the world has increased, so it stands to reason that if we were to adopt some of the suggestions in the book, there is no reason why we can't take back some of our industries.
What do you think Christine?
I need to go back in to read about the debt situation again, I understood the debt both by the government and the consumers. I very much appreciated that he said that, while everyone is laying the fault at the door of the American consumer - he said, the consumers are spending in an effort to prolong their way of life - which is long gone - poof.
The middle class is loosing ground, because their wages are cut and their benefits cut.
...but I found it unsettling to hear about our fragile currency - I'd like to discuss that more too. I also found it alarming what he said about the Chinese goverment - their investment sector - buying into other countries etc. I'm going back to read that again.
It was scary to see that this book was so up to date, almost up to the minute. It mentioned that the real estate crisis would be the beginning of the unraveling of our economy.
To me it was a non-brainer that there has to be alliance between the U.S. and Europe for our economic survival, but I was surprised how clearly he showed that the U.S. has no allies to speak of in Asia except for Japan, South Korea and Taiwan. I was a bit rattled when he showed the strong connections the old communist countries like India and China still have with Russia and was not happy to read about their summits that are getting no press in the U.S.
They are building up their military, both Inida and China are spending an enormeous amount of money - but then, you need to protect what you have.
Their Asian summits do get press in Europe - but in the U.S. they do not receive much attention, unless PBS gives it air time. That alone to me is just another nail in the coffin of our ignorance. It's like America just doesn't care what happens outsider it's borders, unless it directly involves them.
He confirmed what I knew in that Inida and China are doing fantastic - in some areas of the country - the rest of the country isn't touched by wealth in any way. He talked about the danger in that. China may be sitting on a pwderkeg internally.
I saw a blip about Obama speaking in Berlin yesterday - they called it a speech campaigning not for President of the United States, but a speech to become the leader of the Free World!
Again, the thing that bothers me - nothing concrete in that speech as to where we may be heading if he should become president.
Rhetorik about the future of the West, but still a good sign that a presidential hopeful would venture out to another country like that.
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This is a wonderful review. I thought I would host a chat about the book next week. I will announce it in the Today On Gather article. Are you up for it?
Time flies, but if it is ok with you I'd like to at least throw out one maybe two of the points made in the book and throw out my impression for further discussion. You know like we do with the authors - list a question ahead of time.
I'll post my question/argument/thought that I wanted to discuss with you all right here on my book review and also on your book review.
There are a plethora of issues discussed - anything from our currency-asian investments and debt issues or the environment - but I'd like to pick three for discussion if I may - I'll be in Europe - but I'll try to look in if I can:
1. INDUSTRIAL MANUFACTURING
I think it is a huge error that we are allowing our industrial base and electronics industries to be completely taken over by Southeast Asia.
Prior to reading Steingart's book I had not considered the implications and taken it for granted that we can survive with service industries - which already proved to be a mistake - those jobs are going to India.
My take is that we are making ourselves unneccasarily dependent on other nations.
The author makes a great case of showing us that demand is up, yet we have crippled our own industries by not protecting them.
What is your view on this issue?
For instance:
I do want to add something else here - I just saw an interview on C-Span with another author, Richard Elkus, about his book called "Winner take all".
The point of the book was to show that with the new digital technology for TVs we are now entirely dependent on China and Southeast Asia.
Why? - because TVs are no longer produced - IN FACT WE HAVE LOST THE CAPACITY FOR MANUFACTURING IN THE US!
I can think of about ten reasons why that is a threat to us.
Basically we partnered up with Southeast Asia - to develop the new technology and produce it.
In order for the United States to set up and build a manufacturing plant for digital technology now - which is all that will be available as of Feb 2008 - it would take months and an astronomical investment of billions. Yes billions.
As far as the computer industry, we better stay in the game.
(I wanted to bring in another viewpoint from an industry professional to support in just one more detail what Steingart already claimed in his book. )
2. UNITED STATES - EUROPE - ECONOMIC ALLIANCE
To me that is a no-brainer. I find it hard to comprehend that the U.S. does not seem to want to acknowledge the necessity of having an ally and a partner.
The US free trade policy is disastrous and not suited to our times any longer.
Europe is facing the same issues and if they want to survive the Asian onslaught economically they need to start protecting their own economic interests too.
Why? Because China is running - not walking through our open doors - they don't have to conquer us via an old fashioned war.
They undermine our economy and invest in our currency - daily.
Yet - we are happy to run to Walmart for the poison wares from China.
3. IS THE ELITE SELLING US DOWN THE RIVER?
The one point above all that I found so unsettling is that the rich who at present are still profiting from the globalization are in no way inclined to see a problem here.
Or are they? Do you know of efforts being made to protect the U.S. workers?
Steingarts book is based on solid and up to date facts - the rich get richer, the middle class is disappearing or struggling to hold onto status quo - never mind improving their finances and the most disheartening is the NEW POOR.
The new poor - 38 million white Americans are a real problem, as we are creating a segment of the population that is beyond being dumbed down.
If there is anything at all that is necessary to compete and survive - it is EDUCATION.
ILLITERACY, a feeling of knowing that you do not matter - these people know they do not have a shot at a job. In the past there was hope for education and seeing your children do better.
That is no longer the case for our new poor - alarming!
How do you see this?
The other side of the coin - is that we need to continue to provide a first class education to our young. It's through education and knowledge that you stay on top. We need to work on improving what we have or it will soon no longer be good enough.
LAST THOUGHTS:
We need to address our health and welfare systems and examine our current free trade system. We still have time to come out ahead and stay in the game and become part of the New World Order - but time is running out, the longer we wait, the harder it will be.
It is time for an alliance, a framework of regulations for global trade and for the government of the West to protect itself!!!!!
WHAT DID YOU THINK ABOUT THE HEALTH AND WELFARE SUGGESTIONS AND IMPLEMENTATIONS MADE BY STEINGART?
WOULD THEY GIVE US AN EDGE AND LEVEL THE PLAYING FIELD?
I wonder how the presidential candidates intend to address this issue.
I CAN'T WAIT TO HEAR WHAT YOUR OPINIONS ARE - I FEEL LIKE RUNNING OUT AND FORMING AN ORGANIZATION FOR THE PROTECTION OF THE ECONOM INTERESTS OF THE UNITED STATED OF AMERICA AND EUROPE.
I am one of the minority (unfortunately that have boycoted all Chinese made goods for as long as I can remember. I buy made in the U.S.A. and when I find a product say's that yet has plants out side the U.S.A. I quit using it. It has meant buying goods at a higher cost many times. Doing with out items I can not find made or grown in the U.S.A. and making alot of my products (as body care and cleaning supplies but I have done it so long I wouldn't know what to do to stop it,or want to.
I start early and make all my christmas presents birthday ...etc. I have passed this down to two generations and working on the third (great grand children)
I walk dont drive or now use an electric mobility schooter if i need to go some where I can not get to walking. I admit I do use buses that use gas but not at my liking.
I know my children and grands dont take this as seriously as I do but I have planted the seed
Guess you would think i am a bit loonie for feeling this strongly since I was a teensager but thats ok I feel good about myelf
This book does not condemn, but shows and explains in examples - how our government is responding and operating in a world market and how it impacts us at present as well as what options there are.
This book, except for the history of the nations was not an easy read and is one of those books you go back to, because it opens your eyes to a complex world economy and it's pitfalls for us. I think it is time America wakes up and understands what's happening.