Pros, cons come with globalism
Globalism has its supporters and its detractors. One thing it doesn’t have is a consistent, coherent definition for which everyone agrees. As a result, people often think it is good or bad for mistaken reasons. Some understand the differences but intentionally confuse the issue.
From an economic perspective, globalism, as in expanded trade between private partners around the globe, one of the definitions, is definitely good. It is a recognition of the interconnectedness of the world, with “social, cultural, technological and economic networks that transcend national borders,” as the American Heritage Dictionary puts this version.
The economic principles of division of labor and comparative advantage are leveraged when more people and more regions are included. When individuals specialize, they become more productive, and with the higher production, they are able to become consumers of the produce of other people. With more people producing more goods, the real cost of those goods declines and the standard of living increases, as has been seen over the last several hundred years in nations that embraced international trade and voluntary commerce.
Further, when people or regions produce things for which they have an advantage relative to other areas, they will reap benefits by not wasting resources on things for which they are not best suited.
The benefit of this type of globalization is that ideas and cultures, as well as goods, are shared across borders. Residents of various regions can take advantage of advances and developments in other areas of the world, not only in technology or products, but also in methods and philosophies. The number of people who subsist at extremely low levels of income has declined dramatically as more countries embrace the ideas of economic and political freedom. Freedom and markets tend to raise the standard of living.
The other definition, “A national geopolitical policy in which the entire world is regarded as the appropriate sphere for a state’s influence,” from the same dictionary, is the bad globalization, but is not limited to single nations. It is the globalization also pursued by the United Nations and the world’s international politicians, bankers, and their cronies in well-connected mega-corporations. Whether it is at the national or international level, it is the imposition of politics over freedom on a worldwide basis.
Nationalism is certainly not good as a policy that closes a nation to the international exchange of products, people, and voluntary commerce. It is the repudiation of ideas that fostered such progress as was made over the last few centuries. International control and central planning of those same things by unaccountable, out-of-touch bureaucrats is no better. Socialism imposed internationally by a supranational political body is actually worse, because it doesn’t allow for competition between jurisdictions, letting nations experiment with tax, regulatory, and social policies to see what works best. Competition in markets and in politics is the mother of national and international progress.
Donald Trump has taken advantage of the concern for the second brand of globalization, the bad kind, to stir people up, but has attacked the first as the real enemy. Protectionism rings a bell because many people believe that they are being hurt by immigrants and products from foreign lands. The reality is that they are being hurt by their own government, which prevents them from realizing the benefits of expanded commerce.
Monetary policy that inflates away productivity gains, bail-outs and protection of bad actors in the economy, and taxes and regulations that strangle employers and producers all reduce the standard of living for millions of Americans, or citizens of other nations with similar policies.
International exchange of goods, people, and ideas is not the problem. Abusive government, national or international, that stifles progress is.
Dan McLaughlin, a Randolph resident, is the author of “Compassion and Truth-Why Good Intentions Don’t Equal Good Results.” Follow him at daniel-mclaughlin.com
