The Limits of Interdependency in Economy

Join the DebateJohn Horvat II, the author of Return to Order, regularly updates this site with insights about the cause and solution for our economic crisis. He invites you to share your insights too. Please join the discussion. Mr. Horvat is committed to make a serious effort to answer posts, schedule permitting.

ISSUE BEING DISCUSSED FOR Monday, December 31st, 2012

Today, we have huge interdependent global networks—in communications, Internet, transportation, shipping, finance, government and so many other fields. While these interdependent networks may facilitate the workings of an economy, they also leave us very vulnerable since if one piece of the puzzle breaks down, the whole process is stopped. What is the proper balance in interdependency?


  • John Horvat II

    The whole fiscal cliff debate is an example of just how fragile our interdependent economy is. Government has involved itself in everything and when the government is in crisis, the whole society is in crisis.
    There is no balance. 

  • Sometimes people here in Pennyslvania buy apples from far away places when we have our own local ones that are so excellent.  There is no need for us to import apples.  Like apples, there are many local items that are excellent and that can be developed to a high degree of quality. The proper balance is that each region develop its own potential to the fullest.

  • Francis Slobodnik

    The ideal is to produce and buy locally as much as possible and only purchase those items that cannot be made locally, by home state, by region or by home country.  

  • RaymondDrake

    Bill Powell in CNN Money (“The global supply chain: So very fragile” Dec. 12, 2011) explains that Japan’s March 2011 earthquake/tsunami and Thailand’s November 2011 flooding had far-reaching negative financial impact in manufacturing concerns worldwide. But he has some good news too. Because of the pain, some American manufacturers have begun to shy away from the Toyota-invented “lean supply chain” and “just-in-time inventory” to a “more old-fashioned model that has plants squirreling away components for a rainy day” and “investing in backup facilities.”As I see things, the more we bring manufacturing back home and return to the traditional “tried and tested,” the less vulnerable America will be.

  • wcam

    Unlike the organic approach because of our global economy most countries need to be involved in these interdependent networks to maintain some sort of worldwide economic and diplomatic stability. But this could be a double edged sword because if a nation becomes to interdependent economically with other countries they are dancing with disaster.
    The proper balance would be for each country to have a limited and measured interdependency in order to maintain their own autonomy and uniqueness.
    In regards to products and services maybe this can be achieved by each country importing products and services that can not be produce in their own country. In reality I don’t know if any country can walk this fine line and maintain a proper balance; today it is almost impossible.