Economic consequences of a globalist policy

Sunday, November 25, 2018

There is a lot about economics in the Norwegian mainstream media, but you are not told an important indicator. Purchasing power adjusted GDP per capita shows how much in real value is produced for each Norwegian. You may be overwhelmed when I tell you that this is the same today as in 2007. If we include the fact that the richer part of the population has received a larger proportion of cakes in recent years, it means that the Norwegians have it worse now than ten years ago.

The mainstream media have mainly said that the Norwegian economy has gone well in recent years. This is true, but if we count on the huge increase in the population through immigration, we are experiencing the same badness today as ten years ago. We have had a lost decade.

Simple economic theory can indicate that immigration is the cause of the increasing skew distribution of resources. As in all transactions, the price is determined by supply and demand. When there are more jobs and not demand increases in line with this, the labor cost will be reduced. Particularly in the sectors where immigrants have the competence to work in or manage to acquire competence for, will experience increased competition and hence reduced wages.

It must be clarified when it comes to Norway that the market alone determines wages. Here, wages are set for each sector after negotiations between unions. Thus, the salary in Norway will not necessarily follow the market. In economic theory it is known that if wages are seen over what the market naturally determines (equilibrium), fewer positions will be offered.

In the last decade, the proportion of work has been drastically reduced. When the workers can not undermine each other, fewer people can get a job. Instead of adding two to a smaller salary, they must hire one for a higher salary. The increase in labor supply thus entails a reduction in the proportion of employment. What happens is that the weakest are selected out of work. It is clear that an employer wants preference for a healthy and experienced foreign worker, than a sick Norwegian worker. Outside is increasing as competition progresses.

Free trade is another fad for the globalist elite. They want the whole world to be able to trade without restrictions, something they say will bring a better economy. There is a truth in that we have access to cheaper products than ever, but a negative consequence is that domestic production is moved abroad. It is particularly uncertain whether cheaper products justify the major losses of jobs and resultant social degeneration. It follows from economic theory that free trade will lead to a convergence of wages between rich and poor countries. Because workers in richer countries will reduce their demands for work. The richest are those who will enjoy the best of this, since they can take more of the profits of production. There has been a huge increase in billionaires in the last 10 years and they are getting more and more of the world’s resources.

The globalist policy summarizes a reduction in standard of living for the poorest part of the population. It is a policy that transfers from the poor in the western world to the kingdom. If it is supposed to do this, I do not know, but the consequences are clear.

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