Walmart’s Irrational “buy American” Campaign

Walmart‘s latest push to Buy American and Hire Veterans is irrational. In a world of interconnectedness in which products from pencils to airplanes are produced with parts and components made all over the world the “buy American” argument falls into pieces.

In today’s world mass consumption economy there is not a single product that can be claimed to be “national” or “unique” without ignoring the intertwined network of global production. If your argument is “yes” there is such a thing as “100% national” or “100% American” then I will still be able of arguing against your position. Why? Because the economy of the United States of America is not only part but dependent on the global economy.

By 2012, only about 32 cents for every dollar of U.S. debt, or $4.6 trillion, was owned by the federal government in trust funds, for Social Security and other programs such as retirement accounts, according to the U.S. Department of Treasury.

The largest portion of U.S. debt, 68 cents for every dollar or about $10 trillion, is owned by individual investors, corporations, state and local governments and, yes, even foreign governments such as China that hold Treasury bills, notes and bonds.

Foreign governments hold about 46 percent of all U.S. debt held by the public, more than $4.5 trillion. The largest foreign holder of U.S. debt is China, which owns more about $1.2 trillion in bills, notes and bonds, according to the Treasury.

In total, China owns about 8 percent of publicly held U.S. debt. Of all the holders of U.S. debt China is the third-largest, behind only the Social Security Trust Fund‘s holdings of nearly $3 trillion and the Federal Reserve‘s nearly $2 trillion holdings in Treasury investments, purchased as part of its quantitative easing program to boost the economy. (Data via: How Much U.S. Debt Does China Really Own?)

So, the next time you think you are “Buying American“, I invite you to reconsider how irrational such an argument is.

Hayek’s Spontaneous Order Goes Global with Instagram

Instagram-user-diegotrial — Instagram user diegotrial

Several months ago when I heard the news about Facebook paying $1 Billion for Instagram I thought ‘the world was going crazy’. My first impression was to think that the ruling scale of values was mistaken. That people was giving value to unimportant things while the rest of the world was still trying to manage to survive the day. I couldn’t understand Why would a company pay such a huge amount of money for a software application for smartphones and iPhone that is only used for procrastination and doesn’t create any value for the world? Last week’s volcanic eruption of Fuego Volcano in Guatemala made me change my mind.

The entrepreneurs behind Instagram, Kevin Systrom and Michel “Mike” Krieger, created an application that was not only user-friendly but that enabled users to share images from anywhere in the world immediately. Such an application was created (maybe unintentionally) to become one of the fastest image reservoirs of instant news and global interconnection. When Facebook bought this photo-sharing app and paid $1 Billion they had not only bought the access to an essential function in millions of smartphones around the world but also connected visually the planet as we had never seen before. Last week’s event in Guatemala was the first time in my life when I could see through my phone in Denmark high quality images of events that were taking place in real-time more than 5,843 miles. Indeed, Hayek’s ideas of how an spontaneous order works was going global!

“Spontaneous order is what happens when you leave people alone—when entrepreneurs… see the desires of people… and then provide for them. They respond to market signals, to prices. Prices tell them what’s needed and how urgently and where. And it’s infinitely better and more productive than relying on a handful of elites in some distant bureaucracy.” Leonard Reed

To say that the world is interconnected and interdependent means to say that we are able now able of bypassing normal newsbroadcasters around the world. No longer will be that easy for anyone to control what the world would see and what the world wouldn’t see (as critized when News corporations around the world have been used to show a biased reservoir of images and videos during the Gulf War, or in the war in Iraq to mention some examples). Now, with access to photo-sharing applications such as Instagram the world not only has access to interconnection of real-time events but also has what Hayek explained as “a more efficient allocation of societal resources than any design could achieve.” Instagram is one more societal tool that enables us to achieve the best of humanity if used for the right purposes. Because of this reasons the founders of Instagram earned that billion dollars and the world is wealthier today.

Article: Global Migration, 1846–1940 by Prof. Adam McKeown

via Flickr”]

Rudolph Vecoli introduced his edited volume A Century of European Migrations, 1830–1930 with the statement “[w]e need to move beyond the framework of the ‘Atlantic Migration’ . . . It [has] blinkered us to the global nature of [migration].”

And indeed, that is what Prof. Adam McKeown planned to demonstrate in the article “Global Migration, 1846–1940”. The article is a great tool to understand the role that global interconnectedness, industrialization and increase in trade meant for the world. McKeown explains how was it that millions of migrants during the period of his study enabled for the population of America, Southeast Asia and Manchuria to increased more quickly than world population.

Read it:Global Migration 1846-1940. McKeown, Adam, Ph.D. Journal of World History, Volume 15, Number 2, June 2004, pp. 155-189 (Article)

HTML Version | PDF Version (421k)

Why Globalization Matters?

“It was by making myself a Catholic that I won the war of the Vendee [the war of counter-revolution in western France], by making myself a Muslim that I established myself in Egypt, in making myself Ultramontane [a devotee of the papacy] that I won men’s hearts in Italy. If I were to govern a Jewish people, I would re-establish Solomon’s Temple.” Napoleon Bonaparte

It is with Napoleon’s astonishing remark that I decided to give you some light of what Globalization refers to and why I choose to write about it as one of the two pillars of my research.

The term Globalization (also referred to as Globalisation) refers to what many different historians considered a process of interrelation (or unification) of the world. It was a process of cultural, political and economic relations that for the first time in history united all mankind.

It has been the aim of historians to identify When does Globalization begun and How it begun. But also, it has been their aim to question if Globalization as a process has already concluded or if it is an ongoing process in the 21st. Century. As well, historians are still trying to explain if Globalization should be judged (or not) as the result of only positive (good) results in regard to increasing the wealth, culture and technology of the world; while other historians argue that Globalization has also resulted in poverty, losses, conquest and cannibalization.

Globalization has been studied from different approaches in Social Sciences. Sociologists and Anthropologists have focused on the cultural effects that the transfer of technology, mass migrations, institutions and products has had in different regions of the world. Political Theorists studied how Globalization affects the institutions, norms and hierarchical authorities in specific regions and how changes in other regions may have had altered the status quo. Economists study how globalization increased the commerce and transactions between regions and territories through trade, investments, and flows of capital just to mention a few.

In this blog I’ll aim to discuss Globalization as a process and a result of the interconnectedness of human’s psycho-epistemology in specific contexts and periods of history. My mission is to study how human behavior is not determined by nature and how human free will (action that results from rational or irrational reasonings chosen between opportunity costs) has shaped the course of history until the present.

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