By Joseph Stiglitz – Trump exploited understandable grievances among a large swath of American society, whose standard of living has stagnated for almost half a century. Defenders of globalization say that Trump has unfairly blamed globalization, when the real culprit is technology. Of course, Trump like so many demagogues prefers to blame others.
Though even without globalization, technological advances would have meant workers without a college education would be hard pressed, the reality is that globalization has played a central role: even without changes in technology, especially unskilled workers would have seen wages depressed. Globalization was oversold: the increase in output was less than hoped, and there were costs—especially the lowering of wages as the bargaining power of workers weakened.
The problem though is not so much with globalization itself, but with the way it’s been managed. It’s been managed to benefit those at the top.
For three quarters of a century, the US led the way in creating an international economic system in which borders were becoming increasingly unimportant. Now, Trump has reminded everyone that borders do matter.
The world won’t be the same: the efficient supply chains that were created ignoring borders will have to be reconstructed for this new world. more>
Posted in Banking, Business, EARTH WATCH, Economic development, Economy, History, Leadership, Media, Net
Tagged Business, Capital, Free trade, Globalization, Government, Jobs, Leadership, United States
By Banning Garrett – New technologies are moving us toward “production-at-the-point-of-consumption” of energy, food, and products with reduced reliance on a global supply chain.
The trade of physical stuff has been central to globalization as we’ve known it. So, this declining movement of stuff may signal we are approaching “peak globalization.”
To be clear, even as the movement of stuff may slow, if not decline, the movement of people, information, data, and ideas around the world is growing exponentially and is likely to continue doing so for the foreseeable future.
Peak globalization may provide a pathway to preserving the best of globalization and global interconnectedness, enhancing economic and environmental sustainability, and empowering individuals and communities to strengthen democracy. more>
Posted in Broadband, Business, Economy, How to, Net, Transportation
Tagged Broadband, Globalization, Industrial economy, Jobs, Manufacturing, Super regions, Technology
Straight Talk on Trade: Ideas for a Sane World Economy, Author: ani Rodrik.
By Dani Rodrik – A principled defense of the nation-state would start from the proposition that markets require rules.
Markets are not self-creating, self-regulating, self-stabilizing or self-legitimatizing, so they depend on non-market institutions.
Anything beyond a simple exchange between neighbors requires investments in transportation, communications and logistics; enforcement of contracts, provision of information, and prevention of cheating; a stable and reliable medium of exchange; arrangements to bring distributional outcomes into conformity with social norms; and so on.
Behind every functioning, sustainable market stands a wide range of institutions providing critical functions of regulation, redistribution, monetary and fiscal stability, and conflict management. These institutional functions have so far been provided largely by the nation-state. more> https://goo.gl/yjmnyK
Posted in Book review, Business, Economic development, Economy, History, Regulations
Tagged Globalization, Government, Industrial economy, Markets, Nation state, Regulations
By Scott Atran – The values of liberal and open democracy increasingly appear to be losing ground around the world to those of narrow, xenophobic ethno-nationalisms and radical Islam.
This is not a “clash of civilizations”, but a collapse of communities, for ethno-nationalist violent extremism and transnational jihadi terrorism represent not the resurgence of traditional cultures, but their unraveling.
This is the dark side of glottalization. The western nation-state and relatively open markets that dominate the global political and economic order have largely supplanted age-old forms of governance and social life. People across the planet have been transformed into competitive players seeking fulfillment through material accumulation and its symbols. But the forced participation and gamble in the rush of market-driven change often fails, especially among communities that have had little time to adapt. When it does, redemptive violence is prone to erupt.
We need a strategy to redirect radicalised youth by engaging with their passions, rather than ignoring or fearing them, or satisfying ourselves by calling on others to moderate or simply denounce them. more> https://goo.gl/zf4oos
Posted in Broadband, Business, Economic development, Economy, Education, History, Leadership, Media, Net
Tagged Democracy, Extremism, Globalization, Internet, Leadership, nationalism
By Servaas Storm – The U.S. economy is suffering from two interrelated diseases: the secular stagnation of its potential growth, and the polarization of jobs and incomes. The two disorders have a common root in the demand shortfall, originating from the ‘unbalanced’ growth between technologically ‘dynamic’ and ‘stagnant’ sectors, which—crucially—is bringing down potential growth.
The key mechanism is just this: rising real wages, as during the period 1948-1972, provide an incentive for firms to invest in labor-saving machinery and productivity growth will surge as a result; but when labor is cheap, as during most of the period 1972-2015, businesses have little incentive to invest in the modernization of their capital stock and productivity growth falters as a consequence.
Financial globalization, in addition, enabled the rich to have their cake (profits) and eat it (by channeling them to offshore tax havens or into derivative financial instruments). In this way, trade and financial globalization have been essential building blocks of the dual economy. more> https://goo.gl/5EFndw
Posted in Banking, Book review, Business, Economy, History, Leadership, Media, Net
Tagged Financial crisis, Gig Economy, Globalization, Productivity, Stagnation
By Reid Wilson – The Hill spent months digging deep into decades of data that illustrate the nation’s changing demographics, economics, culture and politics.
Those glimpses of a changing America are evidence of a series of countervailing demographic, political and economic forces that have long exerted themselves on the nation — and now define the quadrennial struggle between two sides of the political aisle that are deeply polarized along race, class, economic and educational lines.
At the center of the divide are two sets of divergent trends.
The first set contrasts the changing face of America, which is being hastened by the rising influence of the most diverse generation in American history, with a radical political shift among the nation’s still-dominant cohort of older whites, who now act as a more homogenous voting bloc than ever before.
The second set reflects the changing nature of how Americans live, work and build economic power. A generations-long trend toward wage stagnation, automation and globalization is in the final stages of exterminating the blue-collar manufacturing jobs that once sustained America’s middle class in the heartland. more> https://goo.gl/YgDUA0
- How the GOP came to dominate, and be dominated by, rural voters, Reid Wilson, thehill.com
- Democrats in an urban box, Reid Wilson, thehill.com
- Misreading lessons of an evolving electorate, Reid Wilson, thehill.com
- Trump’s job promises face challenge in auto sector, Reid Wilson, thehill.com
- Trade war starts new chapter in age of Trump, Reid Wilson, thehill.com
- How the recession’s long hangover lingers, Reid Wilson, thehill.com
Posted in Business, CONGRESS WATCH, Economic development, Economy, Education, History, Net, Technology
Tagged Demography and Population Studies, Globalization, Manufacturing, Polarization, Trends
Competing for the World
By Jeffrey R. Immelt – Today, I want to give you some views on globalization … what works, and what doesn’t work, and what needs to change. Please keep foremost in your mind that the U.S. has 5 percent of the world’s population with 25 percent of the GDP. I hope to persuade you that – rather than pulling back – the U.S. can win the global game. But, we have to compete.
I have spent my career doing just that. When I joined GE – in 1982 – 80 percent of our revenue was in the U.S. In 2017, nearly 70 percent of our revenue will be global. We have customers in 180 countries and our exports exceed $20 billion. Our U.S. workers earn high wages because they make leadership products that we sell around the world. Globalization has made us become more efficient, more competitive.
Today, people question globalization. The U.S. is challenging trade deals and has effectively shut down its export bank. The U.S. is not alone. Protectionist barriers are rising in Europe and Asia as well. Economic nationalism is replacing free trade as the dominant idea of the era. Meanwhile, the Chinese are replacing the U.S. as the trade leader on the global stage, growing their influence through expanding relationships and economic development.
How did an ideal so connected to American influence and success become so demonized? In retrospect, there were key changes along the way. I’ll name a few. more> https://goo.gl/WLgK88
Posted in Business, Economy, Education, History, Leadership, Media, Net
Tagged Business improvement, GE, Globalization, Internet, Leadership, Manufacturing, Technology