When all is said and done, it all goes back to money. The world has entered a new stage of homogenization never before seen.
by Donald Ward
The "third way" is a buzzword for
a new kind of capitalism being proclaimed by heads of state in Europe.
The term was coined by social psychologist, Anthony Giddens, in his
book titled The Third Way. Giddens analyzes the principal economic
systems that have dominated the twentieth century, namely state socialism,
communism, and free market capitalism. He concludes that socialism
and communism have failed miserably. So the only viable alternative
is capitalism. But free market capitalism tends to run out of control.
Thus he advocates "third way" capitalism.
Third way capitalism calls for state
regulation and coordination of capital. When it comes to third way
economics, the United States economic system provides a model for other
nations. Its economy is regulated to a large degree by the Federal
Reserve. Through its policies it controls the nation's, and to some
degree, the world's money supply. When the economy heats up and inflation
raises its ugly head, the Fed increases the prime lending rate. When
the economy slows down, the Fed lowers the prime rate. The U.S. economy
is so pervasive that the Fed's monetary policy influences the world's
economy. In addition to national monetary policies, larger blocks of
nations, such as the G-8 nations and the World Trade Organization,
develop various trade agreements and monetary policies that significantly
impact global economics.
European countries and British commonwealth
countries are in the process of making the transition from state regulated
economics to the free market system. They are struggling to find the
balance between state control and privatization. I recently visited
New Zealand, once a bastion of state socialism. They were quick to
point out that they are in lock step with the other Pacific Rim nations
by privatizing their major industries as quickly as possible. The textile
industry is currently being deregulated. They were also quick to note
that most of the textiles in their stores are labeled "made in China" or "made
in Taiwan." The free market system has engulfed the world's market
places. Even though China has not been "officially" admitted to the
World Trade Organization, its textiles are being marketed in virtually
every department store on earth.
