Listen to Henry!
Capitalism succeeds when DEMAND from higher wages for low and middle-income workers matches SUPPLY. Purchases at this income level add volume, reduce cost and price, and spread wealth- an economic dynamic not matched by more wealth for the wealthy.
Henry Ford, watching his Model T cars rolling off the assembly line in 1915, figured out that unless he raised his workers’ wages way up to $5 a day, they could not afford to buy the cars because DEMAND would not match SUPPLY and sales would drop.
Globalization can unite the world in economic common purpose, but it has become a dirty word because most managers of global companies aren’t as smart as Henry. They try to maximize short-term profits by suppressing wages and benefits, not by motivating workers to long-term superior performance with higher wages.
Globalization will be a source of friction until global companies pay enough, including incentives, so that workers can both cover basic needs and have money left over to buy products from other countries.