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The Globalization Drag

One of my regular blog visits is to Five Short Blasts. Pete Murphy wrote a book by the same name that was a very readable book on the complicated subject of trade. In the post he quotes a article which points out industries not tied to globalization growing quite nicely.

Last month, a report from the council said the most globalized industries in the United States, such as manufacturing, agriculture, and mining, saw cumulative growth of 38.4 percent over the past decade, just over half the 66.8 percent growth of the entire US economy. Industries unaffected by global trade, such as healthcare, construction, and personal services, grew 73 percent. “When you see that our most globalized sectors have lagged behind the economy as a whole, that tells me that our globalization policies have failed the economy,” Tonelson said.

Pete Murphy might be right when he points out protectionism may be exactly what our economy needs to get back on track.