If the coronavirus proves to be serious, as it does not appear to be at the present time, many economies could be adversely affected. China is the source of many parts supplied to producers in other countries, and China is the source of the finished products of many US firms such as Apple. If shipments cannot be made, sales and production outside of China are affected. Without revenues, employees cannot be paid. Unlike the financial crisis of 2008, this would be an unemployment crisis and bankruptcy of large manufacturing and marketing corporations.
This is the danger to which globalism makes us vulnerable. If US corporations produced in the US the products that they market in the US and the world, an epidemic in China would affect only their Chinese sales, not threaten the companies’ revenues.
The thoughtless people who constructed “globalism” overlooked that interdependence is dangerous and can have massive unintended consequences. With or without an epidemic, supplies can be cut off for a number of reasons. For example, strikes, political instability, natural catastrophes, sanctions and other hostilities such as wars, and so forth. Clearly, these dangers to the system are not justified by the lower labor cost and consequent capital gains to shareholders and bonuses to corporate executives. Only the one percent benefits from globalism.
Globalism was constructed by people motivated by short-term greed. None of the promises of globalism have been delivered. Globalism is a massive mistake. Yet, almost everywhere political leaders and economists are protective of globalism. So much for human intelligence.
At this point of time, it is difficult to understand the hysteria over coronavirus and predictions of global pandemic. In China there are about 24,000 infections and 500 deaths in a population of 1.3 billion people. This is an inconsequential illness.
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