Wednesday, July 10, 2019

Air conditioning, revisited


I have a new theory on how globalization affects the United States. You can think of the world as a giant house in summer where the owner can only afford to air condition one room. The rest of the house is hot, humid, and full of mold except for the one room that has an air conditioner. The room with the air conditioner is the developed world. The United States, Canada, western Europe, Australia are relatively comfortable and (until recently) prosperous.
If you open the doors of that room you have the world economy under globalization. The outer reaches of the house get a slight increase in comfort. Most noticeable, however is the one room that had air conditioning. It's conditions deteriorate rapidly.

It's the theory of supply and demand. When there is a limited resource, (water, energy,  air conditioned cool air, diplomas, doctors, teachers, nurses) limiting those people who have access to these resources to the few is better for the few. When college degrees were scarce, people who had such things had a leg up in the job market. After the sixties, when practically everyone had one of those things, they became less valuable. Hence people like me selling hot dogs with a BA degree. Free college for all will only devalue further the degrees for people who already have them. 

The same can be said for doctors and nurses. With health access for all, the doctor's offices will be crammed with people and it will be harder for the people who have health insurance today to get appointments. With an onslaught of immigrants, housing will get even scarcer and teachers will have dozens of new students and they will need to be taught English. This will not benefit the kids who are in these schools now as they will have to compete in more crowded classrooms. Unfortunately, in most places, local taxpayers are not going to want to see their property taxes raised to accommodate other people's children. 

These facts could hurt our Democratic candidates in a general election. One thing I miss about work is now I have to pay for my own air conditioning. 

Editor's note: Expanded from a blog written a few years ago. 

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