Core Dump

It's been a central tennant of the neocon movement that free trade and globalization are good, because they result in lower manufacturing costs, hence lower prices and bigger corporate profits. Of course, that also results in more manufacturing being moved overseas, which results in unemployment or widespread underemployment. John Taplin has a good summary of the problems that rampant globalization has caused.

I know that Larry Summers and Tim Geithner seem cool and calm. I know that Harry Reid, Mitch McConnell, Nancy Pelosi and John Boehner don’t really believe we are still in a financial crisis. Either they are good fakers for the camera or somehow they think the good old American consumer is going to go back to their old ways, max out their credit card and get the mall economy rolling again. This is a fantasy and until we face facts that we have to rebuild an American manufacturing and exporting economy that can put America back to work we will remain prisoners of the globalization fantasy.

Labels: economics and finance