Global Capitalism Quotes

“International economic integration generally expands economic opportunities and is good for society. The great alternatives to economic integration failed. Attempts to seal countries off from the rest of the world economy in the 1930s were ultimately disastrous. Germany, Italy, and Japan closed their economies and also turned toward dictatorship, war, and conquest. The poor countries and former colonies that created closed economies in the 1930s and 1940s collapsed into economic stagnation, social unrest, crisis, and military dictatorships in the 1970s and 1980s. Few countries have achieved economic progress without access to the international economy.

But an insistence on globalization at all cost is equally misguided. During the golden age of global capitalism before 1914, governments committed themselves to international economic integration and little else. Supporters of free trade, the gold standard, and international finance wanted governments to limit themselves to safeguarding these policies and their properties. But these governments ignored the concerns of many harmed by globalization. As the working and middle classes grew, so did their demands for social reforms to improve the lot of the unemployed, the poor, children, and the elderly. The clash between classical orthodoxy and these new social movements turned into bitter, often violent, conflicts, especially once the Depression hit. Attempts to maintain global capitalism without addressing those ill treated by world markets drove societies toward polarization and conflict.”
― Jeffry A. Frieden, Global Capitalism: Its Fall and Rise in the Twentieth Century