Time To Reweave The Economic Growth Model – OpEd
Rising unemployment, inflation and debt burden are dragging the USA down. Its manufacturing sector cannot produce a large diversity of goods at a lower cost which can compete with the Chinese goods in the market.
The advancement of science, research, innovation and the cutting edge technology of Israel has drawn Israel closer to the USA. Israel faces unpredictable military aggression and terrorist attacks from its neighboring countries in regular intervals. A weak Israel would have vanished from the map. The US does not want this because the existence of a strong Israel helps in geo political balance. The USA also does not want to be directly involved in military action against the middle-east countries because of its huge investment in those countries.
So the survival of Israel as a strong nation contributes to the economic and geo-political influence of the USA. But it is like walking on the edge because the mindset of the middle-east countries against the USA and Israel may not change so easily. If it changes it will be the beginning of peace and prosperity for this region. But it all depends on the religious reformers of all countries who should start thinking of humanity as one and the different types of religious worship lead to one God only; the world community will live happily with diversity of culture and religion. Being a powerful country, the USA needs to win the trust and co-operation of the global community to de-radicalize the countries who pose a threat to world peace. Donald Trump can’t do it without huge ideological and spiritual capital. An environmentally safe and sustainable development model should take shape in coordination with the leading developed nations and the USA in the lead role.
A sustainable development model will help many countries to generate surplus income for a healthy global trade. The economic growth of the developed nations largely depends on the surplus income of people in other countries; the surplus income gives the much needed purchasing power to the countries.
Recently the economy of Sri Lanka, Bangladesh, Pakistan, Nepal and many Latin American countries have collapsed because they have spent more than their income; they all crumbled under the debt burden which they can’t repay. Their collapse has adversely affected the economy of the lender nations who persuaded those countries to spend beyond their means. Many other countries are at the brink of collapse and they are hiding their economic ailments with false econometrics. Only a few leaders and their business men friends have amassed wealth by triggering collapse of economies and making human life miserable. The flight of capital from those nations was too huge to estimate. The world economy will be saved if the world community resolves to nationalize the black money deposited in the bank accounts of Swiss banks and other banks across the world. This will be an effective measure to put the global economy on track again. The entire world suffers because of a few unscrupulous anti national elements who jeopardize the future of the economy, society and lives of people.
People are the ultimate contributors to economic growth. The economic model should be redesigned to save people’s surplus income across the world. Erosion of surplus is one of the main reasons why people become migrant laborers in other countries. Donald Trump should team up with other leaders of the developed nations to let the global community protect and preserve their sustainable economic activities. Over exploitation of natural resources for economic growth of countries ultimately destroys both the exploiter and exploited nations. If crop diversity, forest, rivers and hills get destroyed due to over mining, over damming of rivers and due to construction of unnecessary infrastructure projects beyond the actual need, it triggers displacement of people, increases unemployment, poverty and hunger. A large number of people become migrants. Science and technology should be used to protect the natural capital; it should be used to harness the natural resources without disturbing nature’s balance. The world leaders should understand that the profit gained from over exploitation of natural capital is far less than the loss due to natural calamities, loss of livelihood, cost of relief and rehabilitation of people. The worst is that the economy loses its resilience for sustainable growth.
The USA is determined to remove the illegal migrants at a huge cost because the illegal migrants are low paid workforce. The US citizens don’t want to do small jobs; the migrants do the small jobs at a very lower cost. Donald Trump needs to adopt a middle path; he can allow fewer migrants to work. It will be easier to track them and ensure the safety and security of the USA. Imposing high tariffs is not the solution; it has a negative impact on the economy of the developing countries which need purchasing power to contribute to global trade. The tariff barrier will let the developing nations explore new business partners. It will lead to the formation of a group of nations who can trade among themselves without the USA.
Instead of blocking foreign goods with tariffs, the USA can diversify its manufacturing sector to meet most of its domestic requirements and export demand. The USA can’t do this now because the cost of manufacturing in the USA is not a business proposition. The USA is not like communist China with a capitalist approach.
Over the years China has piled up a huge database on original products from different countries; it saved expenditure on research. China happily adds innovation, new shape, color to the original products of other countries and owns those products. Over decades the USA has lost huge intellectual capital due to theft and plagiarism. Successive governments in the USA could not stop the smuggling of intellectual property from the USA. Now Donald Trump should take strong measures to prevent further loss. Besides, the other countries should fight for their lost intellectual property rights. This is high time to instill wisdom and a bit of spiritualism into the economic growth model across the world.
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