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Is Globalization to Blame?

18 pointsby FuNeover 8 years ago

3 comments

derrizover 8 years ago
I&#x27;m unconvinced by this article for a number of reasons.<p>The significance placed on trade deficits always struck me as somewhat misguided so the author&#x27;s uncritical focus on this crude metric is off putting. In aggregate, inward and outward flows have to match by definition. If an American company builds and sells a car to a foreigner this reduces the US deficit but if it builds and sells a house to a foreigner, then this has the effect of increasing it. So in the modern world, running a trade deficit just means you are selling more things like houses than cars.<p>If running a trade deficit was impoverishing, then you&#x27;d imagine that the two lists of countries with the biggest trade deficits and surpluses (<a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;List_of_countries_by_current_account_balance" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;List_of_countries_by_current_a...</a> ) would be dominated by the poorest and richest countries respectively. But they are not - it just depends on the economic specialities of the countries.<p>Also I am suspicious of anyone who uses a dismissive phrase like &quot;so called experts&quot; as part of their argument. In my experience, this generally is a strong signal that the author has a very superficial understanding of the subject. Not that I claim any expertise in the area.
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crdoconnorover 8 years ago
&quot;As it stands, almost nothing has been done in this era of trade liberalization to reduce the barriers protecting our most highly paid professionals.&quot;<p>tl;dr Dean Baker wants to respond to the impoverishment of manufacturing workers by impoverishing professional service workers.<p>&quot;In generating savings from freer trade in the labor of doctors and lawyers and so on, we would also be promoting equality&quot;<p>People like him are why Trump is now in power.
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fuzzfactorover 8 years ago
Well, it&#x27;s certainly not blameless.<p>Edit: It also seems common to misplace fault in many directions while ignoring the influence of globalization completely.