This week on EconoFact Chats, Adam Posen, president of the Peterson Institute for International Economics argues that along several dimensions, the United States has been retreating from globalization for about two decades. Some of the retreat reflects an effort to maintain manufacturing employment. But Posen notes that only 15 percent of non-college educated workers are in manufacturing in the U.S., and manufacturing employment is in decline across many countries, including China.
While he acknowledges that there are legitimate concerns about a race-to-the-bottom in environmental standards and taxes, withdrawing from international competition privileges the status quo and locks in advantages of those already in a good position. International competition, according to Adam, can help us raise our game.