11.8.1: A New Global Structure and its Effects on Workers

 11.8.1: A New Global Structure and its Effects on Workers 

The globalization of capitalism is producing a new world structure, one that integrates the world’s nations into a global production and distribution system. Three primary trading blocs have emerged: North and South America, dominated by the United States; Europe, dominated by Germany; and Asia, dominated by China and Japan. Functionalists stress that this new global division benefits not only the multinational giants but also the citizens of the world. Consider free trade. Free trade increases competition, which, in turn, drives the search for greater productivity. This lowers prices and brings a higher standard of living. Free trade also has dysfunctions. As production moves to countries where labor costs are lower, millions of U.S., U.K., French, and Spanish workers lose their jobs. Functionalists point out that this is a temporary dislocation. As the Most Industrialized Nations lose factory jobs, their workers shift into service and high-tech jobs. Perhaps. But the millions of workers searching in vain for jobs that no longer exist would disagree. The adjustment to what is called creative destruction, innovation that destroys old business models, is certainly not easy. As the U.S. steel industry lost out to global competition, for example, the closing of plants created “rust belts” in the northern states. The globalization of capitalism has also brought special challenges to small towns, which were already suffering long-term losses because of urbanization. Their struggle to survive is the topic of this photo essay. Hearing from the Author: Small Town USA Listen to the Audio

Through the Author's Lens Small Town USA