About Globalization…
Finally a scholar admitting we got it all wrong!
Paul Krugman Admits He and Mainstream Economists Got Globalization Wrong.
Take away from this article:
The first factor: a paradigm shift of the international trading profile from “intra-industry trade among similar countries” to importing goods from countries with a massive labor-cost advantage.
The second factor was the acceleration of the process via technology, especially containerization. That coupled with an eager embrace of free trade by policymakers egged on by overconfident intellectuals who hadn’t thoroughly done their impact assessment homework.
Factor three, lack of policies in place to help people cope with massive displacement as entire industries disappeared, and whole communities were devastated.
In short; access to (unfair) unregulated and overly cheap labor coupled with incompetent western policymakers devastated communities, displaced hard working classes and eradicated entire industries, thanks to globalization.
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