Globalization not causing a recession

Whether we are entering a recession or not is a question that from a technical economic definition is still debatable.  However what is not an open question is that it feels like a recession and most Americans believe it is one.  That being admitted we are watching the presidential hopefuls pander to the electorate that the cause for the current hardship is “globalization” – by which I include, free trade policies, immigration and out-sourcing, etc..  These same hopefuls then offer remedies of isolationism. 

 

Blaming Globalization is an easy but misdirected target for our troubles.  As Daniel Griswold points out in an article on the Cato Institute’s website, Globalization has resulted in less not more volatility in the economy.  Clearly, some individuals have been hurt by free trade and immigration and other aspects of globalization, however it is clear that the economy as a whole has benefited greatly from the integration of the world economy.  The candidates should therefore, focus on how to help the individuals who have been displaced, not on the boogeyman of the us versus them which now passes for economic policy discussions in the presidential race.  

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