So apparently politics, both international and within countries, are a lot more important in relation to the economy than I thought. I knew they they were connected in some way, but I did not know how much they influence each other. There were a few things from the O’Neil chapter that surprised me on this topic. First of all, when compared with other countries around the world, the United States is on the lower end of how much money is collected through taxes. I thought this was surprising, and unfortunate, because it seems like the government is always taking our money.(Or maybe I think this because my parents are always complaining about it). Even though I do not wish to pay any more taxes than I already do, it does kind of make me wonder what kind of new services, or improvements to existing services, the government could provide. But at the same time, if people become too reliant on the government it could turn into a bad thing. Like with Great Britain’s welfare state that developed after the second world war. People were expecting too much out of the government, and it became too expensive. Another thing that surprised me is how close the gini index of the U.S. (45) and Mexico (48) are. After doing research this semester on Mexico I thought they would have more inequality, but I guess my own home country is not too far off.
Something else discussed in the chapter was regulation of trade. I think that the government should have some control over trade, especially international trade, but not complete control. I just learned in my World Civ class about how after WW2 the Soviet Union opposed international trade. A policy only allowing for domestic trade was not good for the country because without any imports they had to make everything themselves, and they did not always have the rights skills or materials to do so. But even with this, there are also some advantages to a controlled economy, such as keeping the industry, jobs, and wealth in the country. If I was forced to choose between an economy with government control over the economy and an economy not controlled by the government, I would probably choose no interference. It seems to be that either way you go there are disadvantages. They are both unfair in their own ways, and if its going to be unfair no matter what, then at this point I think people should be able to compete with others for greater success. If humanity cared more about themselves and wealth, then maybe people could compete and find success without taking advantage of the whole system. But that will never happen.
UPDATE:
When looking at the numbers on a chart it is easy not to recognize the true, and extreme, differences in wealth among the world’s countries. The thing we did with the streamers in class on Monday really helping in realizing this. Given the politics that is involved, it is no doubt a difficult task to determine how rich countries should address problems of the developing world. There are obvious advantages for a rich and a poor country to have relations, but there are also a number of ways in which the interests of each will clash. Even when attempting to help a poor country grow their economy, or making it seem like they are, how these actions are carried out over time are determined according how much the rich country’s interests are being met. I think that no matter the intentions, good or bad, the rich will ultimately always choose to act in their own interest, and use others to do so. This goes back in history and is still true today.
During the time of colonization, industrialized countries wanted to make it seem like they had intentions of helping the countries they came to rule over, but they only exploited them for human labor and resources to benefit themselves. Another thing I learned in my World Civ class that has to do with this is that officials would go to these colonized nations to establish some sort of treaty. But instead of actually doing what the leaders agreed upon, they would write the treaty with policies that only benefited them. The leaders of these colonized areas would sign the treaties because they were written in a language they did not understand. They were unknowingly agreeing to be exploited. Richer countries acting in terms of their own benefits can be seen today with the implementation of NAFTA. Under this agreement, the U.S. has been able to take advantage of cheap labor and the export of agricultural goods to Mexico. While it has produced jobs and other benefits for the country, the advantages seems to be outweighed by the consequences.