On the Wrong Side of Globalization

Trade adds to market efficiency and the diversity of goods. But unlike trade agreements of old, which focus on eliminating ineffective tariffs, the modern agreements focus on non-tariff barriers and minimizing regulations that protect consumers, workers and the environment. Economist and Nobel laureate Joseph Stiglitz – weighing in on the Trans-Pacific Partnership, a proposed agreement of 12 Pacific Rim nations – criticizes secret negotiations. “There is a real risk that it will benefit the wealthiest sliver of the American and global elite at the expense of everyone else,” Stiglitz writes for the New York Times. “The fact that such a plan is under consideration at all is testament to how deeply inequality reverberates through our economic policies.” He describes the proposal as evidence of “mismanagement of globalization.” Stiglitz suggests that reducing regulations and living standards boosts corporate profits while reinforcing inequality. He urges review of all proposed policies for how they might encourage inequality and concludes that concentrated wealth does not trickle down to middle and lower classes or developing nations. – YaleGlobal