Even though globalization generated lots of losers in the past two decades, it has prospered because bubbles covered up the downside. In the United States, Wall Street created financial instruments to allow average people to extract cash out of inflating property value. In Europe, the financial bubble allowed southern European governments to borrow at a low interest rate for distribution to their people.
The bubble income boosted their economic activities and created employment for the people displaced by globalization.
When economic hardship is visible and long lasting, the attitude towards globalization or trade is bound to change. What’s happening in the U.S. presidential election could just be the beginning. More may follow afterwards. Any trade that disrupts a local economy is likely to be stopped. It would be extremely difficult for any country to gain market share in the future. Full story
