The Cairo Review of Global Affairs: The Case for Open Markets

In the aftermath of Brexit and Donald J. Trump’s presidential ascension, a world that embraced globalization and free trade is turning its back on economic and political principles established after the Second World War. Dany Bahar, writing for the Cairo Review of Global Affairs, prefaces his advocacy for more global trade by arguing that protectionism – a policy championed by Trump to revive the U.S. manufacturing sector – would not benefit the developed economies. For the Trump administration, large trade deficits are evidence of failing economic policies. Yet, tariffs on Chinese or Mexican manufacturers may not necessarily encourage US consumers to find substitutes from US counterparts, Bahar explains. The article goes on to argue that international trade would render certain companies in certain industries obsolete as part of a natural cycle. Thus, the US government should focus effort on creating safety nets for the unemployed. Bahar paints a picture of harsh economic reality, yet emphasizes that the future for long-term economic growth for any country lies in preparing for competition and increasing productivity. Balancing safety nets while increasing productivity and competition is a key challenge for all governments. – YaleGlobal