Why the U.S. Stopped Supporting GLOBALIZATION if It Is So Capitalist?

Рет қаралды 768

Ай бұрын

After World War II, the United States was the world's factory, just as China was in recent decades. However, since the 1980s, the U.S. began to focus more on research and development and less on manufacturing products. Companies began to contract and outsource their production to lower costs. But when China joined the World Trade Organization in 2001, the idea that manufacturing jobs should be left to less developed countries, began to gain popularity in the United States. So, the world entered an era of globalization. World exports and imports increased even faster than world GDP, driven by China's rapid growth and falling transportation costs. On the other hand, developing countries also benefited because jobs were created and because trade relations with advanced economies and their more advanced companies, facilitated the transfer of technology. As a result, these countries became more productive and created strong manufacturing sectors and solid middle classes. So, both rich and poor countries benefited from globalization and free trade. Indeed, the United States signed several free trade agreements during the 2000s, and Republican politicians in particular, supported free trade policy, arguing that trade agreements lowered prices for U.S. consumers, while creating markets for domestic exporters. However, in recent years the United States has become radically opposed to free trade. So the questions are: why did the U.S. stop supporting free trade if it is so capitalist, and why will this policy end up hurting Americans and domestic industry?
#economicsnation #unitedstates #globalization

Пікірлер: 8

@jimmyd868 Ай бұрын

People of the U.S. do not support globalization, americans need job here.

@Dmindthinker011 Ай бұрын

Free trade, I believe is a lot more trickier than what we originally thought. First, I’m not sure how you can give free trade the credit for low unemployment if it was Trump’s policies( tariffs) along with Biden, continuing those policies that brought it down. Second it’s was because of China policies of manipulating their currency, the slave labor and as subsidies what part of the reason they became what they are today. Third, the point people would just switch to different jobs, well isn’t that part of the point of when comes to free trade. That people will do jobs where they hold a more strategic advantage and leave the jobs that they don’t.