Wednesday, March 19, 2014
Globalization: Global Boom with Unequal, Unsustainable Benefits
A very good chart accompanying an excellent article by Eduardo Porter in the NYT I just read. I need to add the insights into my map.
We all know globalization has helped the global income gap narrows but within nations, the gap has widened.
The emerging trend is to progressively tax the rich to finance safety nets within nations. After all politics are mostly local. Increasing employment would also be the highest priority. It is not going to be easy to persuade voters to buy into greater liberalization because they mostly feel that the dividend promised a couple of decades before didn't materialize and they have ran out of patience.
Eduardo Porter seems to have failed to imagine China as the next great importer/consumer filling in the role America was performing as the consumer of last resort. There will be two huge importers in future so that the other developing nations could get their turn to grow more wealthy as China has in the last turn.
Update: March 20 4:05 pm
As always when no permanent solutions is in sight, policy makers can only buy time.
Posted by PengYou at 10:31 PM