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- Dec 29, 2015
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Ryan Cooper
FINALLY we are talking about this.
THANKS DON!
Seriously.
Why are liberals so deluded on free trade?First of all, there's no reason why the Western working class has to take the hits of globalization. One could easily imagine a counterfactual history where working class declines were compensated by increased taxation on the rich and better welfare. (That this didn't happen is largely due to neoliberals eliminating trade barriers and cutting welfare at the same time.)
But the more fundamental thing to note is that rich nations almost universally got rich behind stiff tariffs and other anti-trade measures. That was true of the United States in the 19th century, and it was true of Japan and South Korea in the 20th century. The reason for such trade policies was perfectly obvious at the time. As Sven Beckert details in Empire of Cotton, before the Industrial Revolution, the vast majority of cotton growing and textile manufacturing happened in India and China. But as Britain hit on the first instance of spectacular productivity growth, they flooded the Asian markets with very cheap textiles — and enforced their access to those markets with military force.
FINALLY we are talking about this.
THANKS DON!
Seriously.