America’s New JingoesOriginally published at The Wall Street Journal
With markets at last recovering from the turn-of-the-century crash and the attacks of September 11, it is an opportune time to debate America's future in a rapidly changing world economy. America's establishment of liberal economists and media pundits, however, are joining in a cramped new nationalism that jeopardizes the future of American technology and prosperity. Like reactionary jingoes of the past, they are priming John Kerry with the delusional view that the U.S. and its workers are somehow victims of global trade and capital movements. But as the presidential debates turn to domestic policy and economics, voters need to recognize the realities of world economic transformation and the real threats to American dominance.
In a popular image, "Benedict Arnold CEOs" are seen to be offshoring factories and outsourcing jobs. Once-prestigious economists such as Paul Samuelson and once-responsible analysts such as Paul Krugman and once-sensible financial pundits such as Lou Dobbs are adducing twisted new theories of how free trade is no longer a win-win proposition. The alleged victims of expanding trade and globalization run from low-wage American workers to Third World environments, from aging American software engineers to overall U.S. competitiveness. Mr. Kerry is showing a disturbing receptivity to this alarming turn among his economic allies and advisers.Continue Reading at The Wall Street Journal