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Globalization

Democracy today. Most governments today claim to be democratic, but many lack some essential freedoms usually associated with democracy. In some countries, for example, the people are not allowed basic freedom of speech and of the press, or competitive elections.

One of the most important influences on democracy since the 1970's has been the economic and social globalization of the world's nations. Globalization refers to the trend toward increased business, cultural, and government interaction across international borders. Globalization involves the loosening of trade restrictions and the movement of businesses, investments, and workers around the world. It also involves the rapid spread of information, ideas, and values, by means of the Internet and other technological advances in communications.

Some people believe that globalization can encourage the development and practice of democracy worldwide. Increased cultural interaction may help the spread of democratic principles and the reporting of human rights abuses. In addition, democratic countries may be able to use economic pressure to make dictators give up power and establish democracy. Some international economic organizations require nations to establish and maintain democracy before gaining membership.

On the other hand, some people believe that globalization may have negative consequences for democracy. In some cases, a nation's efforts to attract international business and investment may conflict with the needs of the nation's people. Countries may reduce social spending, cut taxes that fund public programs, or eliminate environmental regulations to decrease business costs. In addition, many people are concerned about the growing powers of certain international organizations that are not directly accountable to the people.

1. The Number of Jobs Grows With the Population

As Figure 1 shows vividly, the total number of jobs in the American economy is first and foremost a function of the...