So basically after spending 3 years studying business and economics I understand a little how the world of global economics works and why globalisation will not work. To see a great example we just have to look at the European Union and the Euro. Despite the growing rate in which the world is becoming connected, with people all over the world starting to share common interests and hobbies, just look at Facebook as an example, throughout the world in every country (where they are not banned) there will be people who have a Facebook account.
Despite this each country is still very different in terms of culture, lifestyle habits and commercial laws. The major flaw in the Eurozone is that some countries are far too small to keep up with the larger countries within the EU. Lets look at Portugal as an example. Pre-Euro Portugal was 300% cheaper than it is nowadays. The introduction to the Euro meant that prices for all goods rose due to the strength of the Euro and in keeping with inflation. This would have been fine, except that the national minimum wage hardly rose and is currently €2.50 per hour. The average monthly salary is just €500 per month. This is where the problems lie as the people of Portugal no longer have any money to spend, as they work to pay rent and buy food to live, they cannot afford any other non essential items. This in turn means that shops lose business, leading to job losses and bankruptcy, leading to even less spending, and it is a never ending viscious cycle leading to more and more debt.
The only viable solution I can see is for the member states of the EU to reform back to their previous currencies at the exchange rate given when it was first introduced. Countries will also have to adjust costing on goods, so that consumers can afford to consume, and the countries within the EU should maintain their trade agreements so that there are no negative consequences for leaving the Euro-Zone.
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