Friday, February 25, 2022

How to avoid a fatal backlash against globalisation - Studying how the first era ended could help preserve the second

 In the the 19th century there was an a rapid integration of markets because of advancements in technology such as the telegraph, steamships, and railways. This made it cheaper, faster, and more efficient to move products, services, and people across boarders. Additionally this brought together Britain and the United States, who lived very different economic life styles at the time. The United States was very cheap with high wages, while Britain was the opposite and their wheat prices were 60% higher even. This integration leads to this 60% gap nearly closes as the pricing of their markets practically converged by 1890. The United States was much more expensive, while  Britain was a lot cheaper. These actions ended up changing markets forever. 

This has had an affect in recent times as the integration of markets is happening between the United States and China as a convergence is starting as well. This is narrowing the gap between white collar jobs in China and America. Furthermore, countries that have been attempting to improve education and training since the 19th as a result of migration and integration have taken a more protectionist approach as a cause of this. Things such as tariffs and migration policy has become more strict over time across the world. The issue of protectionism was not actually caused by migration or tariffs in 1914, it was caused by war. Which only cause a short instant of backlash against globalization, but it does relate to the current events going on today. 


Article: https://www.economist.com/finance-and-economics/2022/02/26/how-to-avoid-a-fatal-backlash-against-globalisation



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