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The Price of Nostalgia
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The Price of Nostalgia

America’s Self-Defeating Economic Retreat



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The typical globalization narrative says that America leads the world in expanding open trade, liberalizing capital flows across borders and championing foreign direct investment. Sadly, this does not align with reality, according to economist Adam Posen. In this compelling article, he contends that the United States in fact pursues decades-old policies geared toward protectionism, trade restrictions, barriers to investment and curbs on immigration. While critics blame globalization for current US political, economic and social discord, Posen holds that the real culprit is America’s retreat from the international economic stage.

Take-Aways

  • The United States has largely withdrawn from globalization.
  • The US global pullback is evident in trade, foreign investment and immigration.
  • Officials should enact policies that increase taxes, boost the financial safety net and end trade protections.

About the Author

Adam S. Posen is president of the Peterson Institute for International Economics.


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