BPO and the Global Economy – The Powershift to the East
In recent years, the BPO phenomenon has accompanied the increasing globalization of the world economy and has spawned a shift in the way the United States and Europe view the developing countries of the East. For instance, the increasing movement of companies wishing to outsource their back office work to India and Philippines has meant […]
The Economics of Electronic Healthcare Records
Administrative costs form a major portion of the cost structure of any health care provider. In the case of the United States, administrative costs account for more than 20% of the total costs which need to be incurred in order to serve patients. It is for this reason that many healthcare organizations are trying to […]
Avoiding Three Traps that can Destroy Family Owned Businesses
Family owned businesses have been the norm from the time of the industrial revolution and in fact, they were the mainstay of the business world in the early decades of the 20th century. With the advent of technology and the services sector, the rise of the professionally managed organizations was evident. In this context, many […]
Understanding the Paradigm Shift in the Global Economy
For a long time in the 20th century, the global economy was divided into the developed West and the Third World or the developing economies of Asia and Africa. Any discussion about the economy would invariably be around how many poor people are there in Asia and Africa compared to the affluence that the West […]
The Business Model of Amazon
Investors just can’t seem to get enough of Amazon. Even though Amazon is already the world’s fifth-largest company, investors believe that it is only just getting started! It already has revenues of $125 billion per annum. It is targeting revenues of more than $500 billion in the next few years. Startups have grown at this […]
As the world watched in horror at the images of mayhem and destruction that were underway in the United States, many were left wondering as to what has become of the World’s Oldest Democracy and a Beacon for Liberty and Free Markets.
Indeed, it was hard to reconcile the global perceptions of the US as a Champion of Trade and Commerce and as a Law Abiding Country with that of the stark reality on display during the storming of the Capitol Hill.
With the events of the day proving that the United States is on a dangerous road, it is worth asking as to what the future holds for this Great Country and how would it impact both Global and American Businesses as well as the American Economy and by extension, the Global Economy.
Moreover, it is clear that Big Business has to take its share of the blame as many leading American firms tolerated and even encouraged Donald Trump for his Tax Cuts and other Business Friendly policies even as he systematically attacked each and every vestige, symbol, and institution of American Democracy.
To start with, it would be an understatement to say that the Worst is over and with Joe Biden taking over; it would be Business as Usual (Literally and metaphorically).
Indeed, with two more weeks to go before the Inauguration, it is anybody’s guess as to what Trump and his Supporters would do and moreover, the damage has already been done.
What more, Trumpism would survive and outlast Donald Trump himself and hence, it is better for the United States to start rebuilding its democratic structures as well as strengthen its foundations before it is too late.
In addition, for the American Economy to flourish there needs to be a stable political environment, and hence, it is in the interest of Corporate America to help the Incoming Administration in this regard.
The point to note here is that businesses need law and order to transact and the Wheels of the Economy run only when there are no obstacles and the Cogs in the Wheels are Well Oiled. Given what happened on Capitol Hill, it is clear that some of the assumptions of the United States being a Law Abiding Country have certainly proved false.
Therefore, this incident must be a Wake up Call.
On the other hand, what is America’s Loss is China’s Gain and as the news emanating from there showed, they are celebrating the misfortune of the Americans. India has a stake as well since the United States is one of the leading trade partners in addition to the Humungous Indian Diaspora that is settled there.
Moreover, Prime Minister Modi is keen to take the Indo-US partnership to New Heights and given how he and Trump hosted each other, there is bound to be some unease at the way things are unfolding.
Of course, in purely economic terms, the World’s Largest Economy cannot suffer an Outage without impairing the Global Economy.
With the Covid 19 Pandemic ravaging the United States more than any other country, one wonders whether America is in the midst of a Perfect Storm of Crises that can easily overwhelm the country and even push it to breaking point and eventual collapse.
This then is the central challenge before Biden and it would be a tough ask for him to get the country and the economy back on track without losing much ground further.
Indeed, as the converging crises accelerate, collapse cannot be ruled out completely.
Having said that, it is also the case that the overall institutional framework and the economic foundations in the United States are strong enough to withstand such assaults on them. Indeed, this is the country that was weathered Two World Wars, the 911 attacks, and other such emergencies and come out stronger.
The saying What Doesn’t Break You, Makes You Stronger, is very much the case with the United States.
However, going forward, there has to be Political Bi Partisanship and unless, the leading parties cooperate with each other, the Fault Lines of the Country that are cracking would soon give way to a Tectonic Earthquake.
Therefore, the Road Ahead is indeed difficult and it remains to be seen as to how successful Joe Biden would be. Moreover, the Flames of Polarization and Hatred have been Fanned Enough to Set the Barn on Fire.
In addition, Small Businesses and Entrepreneurs are finding it hard to survive the Pandemic coupled with the Dire Straits in which the majority of Americans find themselves in.
It is a Sad Reflection on the country that the Congress and the Senate cannot agree on how big the Stimulus and the Assistance to the poor be.
Last, it is high time for the Business Leaders in the United States who pride themselves on their Patriotism to Rise to the Occasion and help Joe Biden Steady the Ship.
Moreover, the American Dream seems to be fading and hence, this is the time to follow inclusive policies rather than policies that make the Rich Richer and the Poor Poorer.
Indeed, the Stakes Couldn’t Be Higher for the Country and where it Goes from Now would depend on how well all the stakeholders mentioned here come together to Make America Great Again not only for some but for all.
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What the Current Wave of Protectionism and Populism mean for the Future of Globalization and Free Trade
February 12, 2025
