Wednesday, March 27, 2013

Economic Hitmen

The way America has developed countries through capitalism has essentially robbed them from the freedom and ability to ever be self-sustainable. By seeking out countries that have resources that we want or need, we instead of giving them a loan from the world bank, we use the money to build industry and infrastructure in that country to "help them get started." But when lack of human labor or education provide less-than-necessary means for supporting and growing these businesses, the country goes into debt and is forced to sell the few assets they have back to America to pay back the debt that they "owe." This vicious cycle repeats itself and causes poverty and a large disparity between classes (rich vs. poor).
My emotional reaction to this video was not very dramatic; I am aware of the ways that capitalism, and particularly capitalism injected into third world countries, can do more damage than good. The cycle of selecting countries to support or build up as a disguised means of helping them essentially robs them from the success they may or may not have by developing industries that are plentiful and beneficial for that particular country.
My intellectual response to this video is that America needs to stop seeking out poor and weak countries to "create from the ground up." By controlling the infrastructure of an entire nation, American leaders and CEO's can take advantage of the resources available by giving the country's leaders bonuses and making deals that they can't refuse. In this way, our oil companies control the amount of oil that is produced as well as the price that we are willing to pay a developing nation for their oil. These oil companies that make up a large part of the infrastructure in developing nations don't provide enough jobs in relation to the nation's population, and therefore only benefit a few people. However, the interesting aspect of this type of development in countries is that it happens on a smaller scale than any of the trade that goes on in America, but is still very powerful in using resources and exploiting the vulnerability of these weak countries. As the pie chart in the NPR article shows, America's number one supplier of oil is ourselves, with only 10.3 % from Africa and 12.9% from the persian gulf.
http://thinkprogress.org/climate/2012/07/24/574161/what-five-oil-companies-did-with-profits/
http://www.npr.org/2012/04/11/150444802/where-does-america-get-oil-you-may-be-surprised

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