John worked at a steel mill for 25 years. A recessionary economy and competition with foreign steelmakers forced the closing of the mill. At the age of 45, John is unable to find work in his town, lives in poverty, and must go on welfare. What is the most likely cause of John's poverty?

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Business

Madden Decker

31 July, 22:45

John worked at a steel mill for 25 years. A recessionary economy and competition with foreign steelmakers forced the closing of the mill. At the age of 45, John is unable to find work in his town, lives in poverty, and must go on welfare. What is the most likely cause of John's poverty?

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Tiara Warren · Answer 1

The most logical cause for John's impoverishment is complex, and consists of the changes in the capitalist model brought about by economic globalization. Globalization is an economic and political phenomenon that has transformed the relations of production and labor. The companies started to produce in countries where the labor is cheaper, becoming consequently more competitive. In addition, globalization has increased competition from industries, making the most efficient companies producing goods and services prevail over the others. This, coupled with the context of economic recession, made John lose his job and become poorer.