Financial crisis: Theres plenty of blame to go around – Part 5

Sunday, January 24th, 2010 at 4:06 pm

In the financial crisis: There’s plenty of blame to go around. And, the solutions are just unfolding now little by little. The economy didn’t shift over night. It took months and years of contributing factors that slowed the economy’s growth. This is the Information Highway Era where almost everything is high tech. The Industrial Revolution lasted 100 years with the Ford Model T. Now we have evolved into a more efficient World with World Commerce.

We are now a global economy and have to think worldy now adays. Almost all countries are interdependent on one another. It used to be wages in other countries were cheaper than the gas for shipping and transporting. But, even with thrifty wages in other contries there is a sharp increase in gas and oil prices. This offsets the gains from lower waged earners at the work force.

Now, business as before is a come back. Paying high shipping costs is not the answer to the global economy. Sure, there will always be imports and exports of goods and services but there has to be efficiency too. There is no more parts plants on the other side of the globe. This is not any convienience on productivity. Closeness is the name of the game now when it comes to doing business.

Being worlds apart is just that in every sense of the word. There isn’t endless shipping expenses to be paid. Shipping is now expensive and costly. Closely related Industries will benefit form the same locale or City. There has to be a better reason to relocate over seas than just plain lower waged workers. The high cost of fuel dilutes any profits from overseas. It is called “energy diluted profits”.

Take a lesson from convenience stores. They are right at your corner. They know you won’t travel farther for a gallon of gas to a gallon of milk. It wouldn’t be cost effective and would waste fuel consumption. Consuming the old way where closeness counts in your own neighborhood or City.

So, who is exactly to blame for the financial crisis? We are all guilty of purchasing like we did in the last 20 or so years. All of our puchases are a reflection of the economic state we are in now. We are all in this together and have to fix it together. What goes around comes around. Sure, cheaper wages are enticing with greater profits until fuel costs outwiegh these profits.

In our global financial crisis there are many contributing factors. But, is your neighborhood convenience store still opened for business? Find out what works and what walks in this economy now adays. Sure there are many businesses that went under. At the same token there are pleanty of thriving businesses as well. Whatever works should stay and whatever doesn’t get the job done should go. Blaming one element of our economy is not the answer. Over the last 20 years there was a shift of many factors.

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