The information revolution does not equal globalization. As someone pointed out below, Bruce was singing about deindustrialization due to globalization 35 years ago.

The basic rationale for globalization is that companies say it is more efficient to produce goods overseas. But by efficiency they often mean that labor costs are lower and environmental compliance costs are lower. Efficiency means that production is going to the places where you can pay people almost nothing and pollute while you are it. While this may be economically efficient, it means that workers in richer countries lose. And quite frankly, we wouldn't want to win that battle. As a side note, that is why I don't care if we lose out on trade to other industrialized countries. Canada, Germany etc. are actually more efficient then us in some areas. Not just because they pay workers less and let companies pollute more.

But the international trade system could be setup to ensure basic labor and environmental standards rather than the laizzez-faire race to the bottom that exists today.

Furthermore, free trade creates winners and losers through wealth transfer. Certain areas are winners, others are losers. While free-trade advocates correctly IMO point out that free trade makes the pie bigger, this doesn't matter to all of the losers. If a politician had ran for office in 1990 on the plank that they were going to take $10,000 from every Ohio resident and give $25,000 to every California resident, that would be a huge loser and people would be aghast. But that is effectively what free trade has done. The whole pie is bigger ($10,000 becomes $25,000 for a $15,000 gain) but some people benefit greatly while others lose out through really no fault of their own.

But there is a political solution to this: progressive taxation and other redistribution. Thus the $15,000 is split. So the California resident and Ohio resident are both better off at $17,500.

The Democratic party needs to re-embrace these issues. There are political solutions to globalization (and to upcoming automation) but the current laizzez-faire approach is not it. That will only create a few winners and lots of losers. But politics can change this.
[Post edited by BonsackHoo at 07/12/2018 8:25PM]