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The trouble with economic globalization is that we assumed that markets work and work well all over the world. That there would be an inevitable stable middle c
by clavalle 9y ago
The trouble with economic globalization is that we assumed that markets work and work well all over the world. That there would be an inevitable stable middle class built from the sheer power of market forces.
It turns out that those in power around the world have every incentive to keep the gains to themselves and keep their population desperate -- desperate people have to weigh their economic decisions against their physical well-being and continued existence and play the game not to gain power but not to lose everything. And our answer in the US seemed to be that the market is always right; if parity can't be achieved by lifting the poor around the world up to a near-US level of middle class, then it must be reached by pushing the middle class in the US down to desperation level and reducing our overhead to compete on a world stage where other leaders in power can more easily ignore the negative externalities that they push on their population.
It was, in a word, stupid.
It is too easy for the wealthy of the greater world to ignore the problems they create at home by being 'citizens of the world'.
I don't agree with Trump on much but I do agree that relying upon the market to fix all ills hasn't worked. We need to flex the economic muscle we have and tie trade to political reforms or find a way to bypass the powers that be and pull up the people directly. Otherwise, we are stuck in a race to the bottom.
- Brakenshire 9y ago> I don't agree with Trump on much but I do agree that relying upon the market to fix all ills hasn't worked. We need to flex the economic muscle we have and tie trade to political reforms or find a way to bypass the powers that be and pull up the people directly. Otherwise, we are stuck in a race to the bottom. Yes, you have to have some common standards which undercut a race to the bottom, otherwise countries will compete by undermining each others protection and welfare systems. But you're implying that Trump believes this? Trump has always struck me as a 'cut regulation at all costs' candidate. And the real deal which must make this work will have to be international - perhaps to build these common standards into the trade deals. But Trump again stands directly opposed to that, he wants a 'my country first, beggar thy neighbour' solution, which cannot be sustained.
- clavalle 9y agoFair points. I don't know what Trump's actual policy is when it comes to trade deals I was making (bad) assumptions on the fact that he backed out of or signaled backing out of some trade deals that relied too much on market forces doing the reform work for us.
- smpetrey 9y agoTrump (err well, The Whitehouse and his staff) don't have a policy on trade deals at the moment officially. But the GOP do. Some notables include: "International trade is crucial for our economy." [1] "Negotiate reductions in tariffs on U.S. industrial goods and the elimination of other trade barriers so that our autos, heavy machinery, textiles, and other products will no longer be shut out of foreign markets." [2] "Advance a Free Trade Area of the Americas to take advantage of burgeoning new markets at our doorstep." [3] Interesting to see how GOP ideals are forced to evolve at the helm of a madman president because the quoted text above around a decade old. [1] http://www.ontheissues.org/celeb/Republican_Party_Free_Trade.htm http://www.ontheissues.org/celeb/Republican_Party_Free_Trade... [2][3] Ibid.
- zghst 9y agoEven if those entrenched in power are more benevolent in economy and access, they still control the game, forming an addicted consumer dedicated to spreading their decadent cause around the world. In a game now where the most vociferous and powerful voices do everything to increase tribute to faceless gods, tearing down any dissenting man in their wake, does anyone ever think of the end game beyond new "enlighten", well-fed consumers?