El Paso and the Upcoming De-Globalization
Posted by John Peña on Thursday, February 9, 2023 at 2:07:06 PM
By John Peña / February 9, 2023
Comment
Two previous clients turned me onto the work of a geopolitical strategist and author named Peter Zeihan. I have been reading his latest book, "The End of the World is Just the Beginning - Mapping the Collapse of Globalization."
I share this with you because the book has significant implications for the west and southwest, specifically El Paso and San Antonio.
In a nutshell, the author theorizes that globalization (the process of interaction and integration among people, companies, and governments worldwide) is ending primarily due to a lack of capital and labor. He posits that the last 75 years have been a golden era that is coming to an end.
While this may sound like a bad thing, the author believes that the United States is one of the few countries that will weather this storm and make the transition to a more localized system.
So, what does this have to do with El Paso? One word, manufacturing.
As foreign and far away countries (think Apple iPhones being made in China) no longer make the "stuff" of the world, countries will need to tap populations with different wage levels AND different skill levels. The United States has access to this population directly on its southern border with Mexico.
As globalization dissipates, there will likely be an explosion of manufacturing and trade between the US and Mexico (as well as the other neighboring countries on the continents of North and South America).
El Paso and San Antonio are the two Texas locations best positioned to benefit from this shift. When it comes to manufacturing, shorter supply chains that are closer to the consumer are a dream come true.
If you would like to know more, there are plenty of videos and books by Peter Zeihan and others who believe that the world is quickly changing.
Thanks for taking the time to read and reach out with any comments or thoughts!
Post a Comment