it is clear that international peace since 1945 is somehow connected to greater world integration, and trade is a key part of integration. so, economic aperture, coupled with public policy that intervenes in the economy to continually improve the life-chances of the working class, is best -- but it is the latter part of that equation which is more important.
it does make sense for states to intervene in their economies, to pursue an industrial policy that creates healthy conditions that encourage the development of a diversified economic base. trade barriers are a blunt tool and often they are counterproductive, so they should be used sparingly if at all, but there is such a thing as being too open or opening up too quickly.
simply raising economic growth does not necessarily improve the standard of living for the working class. it is entirely possible to conceive of scenarios where a country enjoyed high economic growth and at the same time average incomes stagnated or fell, or the Gini coefficient of incomes increased, or the national share of incomes captured by the top 10% of the population increased. what is important is how economic growth is generated, and how the results are distributed.
it is clear that international peace since 1945 is somehow connected to greater world integration, and trade is a key part of integration. so, economic aperture, coupled with public policy that intervenes in the economy to continually improve the life-chances of the working class, is best -- but it is the latter part of that equation which is more important.
araucaniad 1 year ago
it does make sense for states to intervene in their economies, to pursue an industrial policy that creates healthy conditions that encourage the development of a diversified economic base. trade barriers are a blunt tool and often they are counterproductive, so they should be used sparingly if at all, but there is such a thing as being too open or opening up too quickly.
araucaniad 1 year ago
simply raising economic growth does not necessarily improve the standard of living for the working class. it is entirely possible to conceive of scenarios where a country enjoyed high economic growth and at the same time average incomes stagnated or fell, or the Gini coefficient of incomes increased, or the national share of incomes captured by the top 10% of the population increased. what is important is how economic growth is generated, and how the results are distributed.
araucaniad 1 year ago