International financial flows have declined significantly since 2008, and world trade is stagnating. Rather than portending a period of de-globalization, Sebastian Mallaby analyzes the data more closely to suggest a reset, not a reversal, of globalization.
A few weeks into President-elect Trump’s transition, Edward Alden says, “it is a new day in U.S. trade relations with the world. A nation that has long seen trade as a ‘win-win’—good for American companies, good for Americans, good for the world—is now asking a different question: what’s in it for us?”
Steven A. Tananbaum Senior Fellow for International Economics Robert Kahn writes that financial markets rallied following the U.S. election, on hopes that President-Elect Donald J. Trump’s fiscal stimulus and deregulation initiatives would spur corporate profits and growth. Perhaps so, but a strong case could be made for the opposite: that Trump’s economic agenda will prove disruptive to trade and growth, face growing headwinds in Congress, and exert a contractionary impact on the U.S. economy.
Italy’s vote on constitutional reforms, which may determine whether the country can escape its economic doldrums and rescue its ailing banking system, could have consequences for all of Europe, says CFR’s Robert Kahn.
"The failure to help American workers adjust to the new scale and intensity of global competition is one of the bigger mistakes of U.S. government economic policy in the last half century, one that has resulted in an enormous waste of human capacity and in eroding popular support for international trade and U.S. engagement with the world,” says Edward Alden in PBS NewsHour.
InFailure to Adjust: How Americans Got Left Behind in the Global Economy, Council on Foreign Relations Bernard L. Schwartz Senior Fellow Edward Alden explains why the political consensus in support of trade liberalization has collapsed, and how to correct the course. The United States has contributed more than any other nation to writing the rules that created the competitive global economy of today, helping support stronger growth in much of the world. Yet successive U.S. administrations have done far too little to help Americans succeed under those rules, says Alden.
“Much more even than globalization, technology is going to create upheaval and destroy industries and jobs. This can be for the better, helping us create new and more interesting jobs or freeing up time for leisure and artistic pursuits. But unless we find ways to share the prosperity and help Americans adapt to the coming changes, many could be left worse off than they are,” argue Vivek Wadhwa and Edward Alden.
Learn more about CFR’s mission and its work over the past year in the 2016 Annual Report. The Annual Report spotlights new initiatives, high-profile events, and authoritative scholarship from CFR experts, and includes a message from CFR President Richard N. Haass. Read and download »