In Defense Of Globalization

Different countries have different comparative economic advantages in making or creating different goods. Everyone benefits from getting the goods and services you need or want at the lowest cost and that’s what globalization is all about.

A country doesn’t benefit from blocking trade and making everything within its borders any more than a single household would benefit from making everything they have off their own land. In both cases, trying to make for yourself what others can make cheaper results in lower standards of living, whereas if you trade some of what you do best for some of what someone else does best, then you both win.

It’s basic economics.

That doesn’t mean no one ever loses for a period in time, but that happens all the time anyway. Manufacturing of a given item in a different location has the same effect on jobs as does a new technology for making it easier, cheaper or making a less expensive substitute that fills the same need. It frees up manpower (and mindpower) to use in more productive activities.

I don’t think much of anyone wants to go back to a culture where it took 90+% of the population living on farms and hunting to feed everyone. I don’t think anyone wants to go back to when horsepower was literally that … actual horses. I don’t think anyone wants to go back to a time when thread or yarn was made by hand and then woven by hand into cloth which was then sewn by hand to make clothes.

Yet each of those changes, and millions more like them, resulted in loss of jobs and sometimes entire industries. Yet the overall net benefit is exactly the same as when jobs simply move to a new place where it’s cheaper to make them.

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Posted in Economics.