The reality could hardly agree with growing anti-globalist tenstions in Western Europe (link) that globalisation boosts unemployment and the loss of net economic welfare. In fact, outsourcing, increased trade, offshoring and enhenced economic integration create now jobs that hardly anyone could ignore.
For years, economists have questioned whether a growing inequality of wages is an acceptable consequence of globalization. Such normative attributes are among the central pieces of economic analysis since economists usually have quite different political judgements and values. But the inequality of wages is actually the benefit of globalization. It is nothing else but an outcome of millions of decisions that reward the smartest and most productive individuals. It should be noted that inequality emerging from varying degrees of productive behavior is actually good since individuals and businesses boost their comparative advantage and thus reduce their opportunity costs.
Barack Obama's economic agenda endorses various protectionist measures that appeal soundly into the ears of the voters but have disastrous economic consequences. No serious and productive economist would be eager to defend anti-trade and anti-market rethoric against Wal-Mart and North American Free Trade Agreement. It's absurd to claim, as Barack Obama does, that NAFTA didn't give jobs to American people. It simply changed the strategy of specialization and comparative advantage. NAFTA was not a harm levied on the U.S economy but a gain that benefited U.S, Canada and Mexico together. Hardly anyone would wish high tariffs and burdensome obstacles to trade and investment. As Benjamin Franklin said, no nation has ever been ruined by trade and contemporary economic theory is much about Franklin's early wisdom. Trade doesn't create inequalities but interdependence. It means that gains from trade are mutually exchanged and thus, nobody's welfare is made worse off after trade, but improved significantly nevertheless.
Even World Bank has recognized that there is a strong correlation between trade liberalization and economic growth (link). Trade liberalization enables individuals and enterprises to reduce the information asymmetry and transaction costs.
Surely, with globalization some jobs disappear but an unprecendent growth of jobs in innovative sectors of the economy has outperformed the costs of globalization. Contemporary development of emerging markets has shown that David Ricardo was right about comparative advantage where countries specialize in producing goods and services with the lowest opportunity costs. For example, the U.S companies design software chips, Swiss companies produce fancy watches and some Belgian companies produce unique chocolate candies because those companies have unique resources and advantages that other economies don't have.
In the election year, politicians of all colors, whether it be left or right, Democrat or Republican, endorse protectionist proposals that would protect domestic producers and set huge entry barriers to foreign companies. Maybe it's about time for Barack Obama, Hillary Clinton and John McCain to sit down and learn about microeconomic and macroeconomic fundamentals.
Here is my suggestion (link)