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Globalization Doesn’t Make As Much Sense As It Used To
Article

Globalization Doesn’t Make As Much Sense As It Used To

Since its founding, America has swung from protectionism to free trade. What’s next?

The Atlantic, 2016

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Editorial Rating

7

Recommendation

Globalization enthusiasts argue that all parties benefit from free trade. Former US trade negotiator Clyde Prestowitz, writing in The Atlantic, explains why that may no longer be true for the United States. Yes, during a short and quite exceptional period in world history, the US did benefit from free trade. But free-trade policies didn’t serve the US in the 1800s and may no longer do so in the early 21st century. While always politically neutral, getAbstract recommends this article to those interested in seeing the contemporary free-trade debate in historical perspective.

Take-Aways

  • The benefits that free trade promises only materialize under specific conditions.
  • Protectionist policies, not free trade, allowed the United States to grow its manufacturing industry in the 1800s and to become the world’s wealthiest economy. Heavy government investments and tariffs also were crucial to Germany’s and Japan’s postwar economic successes.
  • Following World War II, free trade and globalization benefited the United States due to exceptional economic circumstances.

About the Author

Clyde Prestowitz, president of the Economic Strategy Institute, is the author of The Betrayal of American Prosperity.