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March 12, 2010
Rabbi David Aaron: You CAN have Heaven on Earth
JWisdom.com Manufacturing mediums with Rabbi Sroy Levitansky (4 minutes)
Caroline B. Glick: The march of the Red-Green brigades
March 11, 2010
Glenn Garvin: Conspiracy theories, why people believe them and how they spread
JWisdom.com For Yourself, Not By Yourself with Rabbi Lawrence Hajioff (8 minutes)
The Kosher Gourmet by Linda Gassenheimer : Turn leftovers into tasty New England hash
Paul Richter: Biden promises 'viable Palestine' is in the offing
March 10, 2010
Paul Greenberg: Death Checks In
JWisdom.com How To Get A (Real) Life with Rabbi Warren Goldstein ( EXTENDED EPISODE)
Paul Richter: Israel exerts soverign right to its capital as Biden looks on astounded
Richard A. Serrano: 'Jihad Jane' indictment alleges threat from within U.S.
March 9, 2010
Wesley Pruden: Joe's Israeli adventure
JWisdom.com Free To Be (Responsibly) You and Me! with Rabbi Naftali Brawer ( 8 MINUTES)
David G. Savage: Supreme Court to rule on free speech in case of soldier's funeral
March 8, 2010
The Jewish Ethicist by Rabbi Dr. Asher Meir: Make a fuss about those who cuss?
JWisdom.com Finding or Losing Yourself? Here's How! with Rabbi David Aaron ( 5 MINUTES)
Steven Emerson: America must learn from the UK about the future of Islamist subversion
March 5, 2010
Rabbi Berel Wein: Golden Calf still with us --- except it has multiplied
JWisdom.com The Limits of Eternity with Rabbi Sroy Levitansky ( 4 MINUTES)
Caroline B. Glick: Biden's lost cause
March 4, 2010
Alan M. Dershowitz: How About A Real Campaign Against Abuses?
JWisdom.com Using Things, Loving People with Rabbi Lawrence Hajioff ( 7 MINUTES)
Jordan "Gorf" Gorfinkel's Everything's Relative
March 3, 2010
JWisdom.com Grasping The Name of Your Life Game with Rabbi Warren Goldstein ( 8 MINUTES)
The Kosher Gourmet by Marialisa Calta : A cowboy's recipes for really good grub
March 2, 2010
Rabbi Avi Shafran: Someone's there
Diane Toroian Keaggy : Have we misunderstood Michelangelo?
March 1, 2010
JWisdom.com Whole in One with Rabbi David Aaron ( 5 MINUTES)
Michael Muskal: Hillary meets with Israeli official, discusses gefilte fish dispute
Feb. 26, 2010
Rabbi Francis Nataf: The Megilla of Spring
JWisdom.com A Biblical Secret for a More Powerful You with Rabbi Sroy Levitansky ( 5 MINUTES)
Caroline B. Glick: When rhetoric rules the roost
Feb. 25, 2010
The Jewish Ethicist By Rabbi Dr. Asher Meir: When walking away from your mortgage is both economically sound and makes ethical sense
JWisdom.com The Second Most Important Question in Your Life with Rabbi Yehoshua Karsh ( 5 MINUTES)
Seema Mehta : U.S.-Israel relations raised in California's Senate race --- by conservatives
Feb. 24, 2010
Rabbi Avi Shafran: The gift of the ‘prayer bomber’
Steven Emerson: Why Religious Freedom Commission is under attack
Feb. 23, 2010
Dennis Prager: Government, Yes! The Divine and Parents, No!
JWisdom.com The Last Laugh of Enlightenment with Rabbi Yaakov Asher Sinclair ( 5 MINUTES)
Anne Applebaum: Prepare for war with Iran --- in case Israel strikes
Feb. 22, 2010
Rabbi Yonason Goldson: Is it not refreshing Tiger Woods' career has crashed and burned so dramatically?
JWisdom.com Esther and the third Truth with Rabbi David Aaron ( 9 MINUTES)
Kelly Brewington: Going smoke-free may raise diabetes risk
Feb. 19, 2010
Rabbi David Aaron: Is the Divine beyond us or within us?
JWisdom.com Olympic Faith with Rabbi Sroy Levitansky ( 5 MINUTES)
Caroline B. Glick: Israel and the West are perpetrators of a myth that endangers the Jewish State
Feb. 18, 2010
Cal Thomas: Who is Rashad Hussain?
JWisdom.com A Wedding Disaster to Remember with Rabbi Y.Y. Rubinstein ( 3 MINUTES)
Feb. 17, 2010
JWisdom.com Think your life is messed up? with Rabbi David Aaron ( 11 MINUTES)
Greg Logan: 'Greatest Jewish sporting event of all time since David versus Goliath' may be postponed because of bar mitzvah
Feb. 16, 2010
Anya Martin : Boy's 'cerebral palsy' fixed with diet
JWisdom.com Feet On The Street Spirituality with Gavriel Aryeh Sanders ( 8 MINUTES)
Marty Peretz: Let Europe Mind Its Own Business. It Brings Nothing To The Table Save For Mischief
Feb. 15, 2010
Herb Geduld: Lincoln and the Jews
JWisdom.com Are Our Children Really Ours? with Rabbi Mordechai Becher ( 5 MINUTES)
Susan King: 'Wolf Man' reflected writer's wartime Jewish experience

Jewish World Review April 11, 2006 / 13 Nissan, 5766

Globalization's second death?

By Niall Ferguson


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http://www.JewishWorldReview.com | Are we witnessing the beginning of the end of globalization? And should we be cheering or chafing at the prospect of its demise?


It's one thing for the French to block cross-border takeovers and riot at the prospect of increased labor market flexibility. From the arch-charlatan Jacques Chirac down to the silliest Sorbonne student reenacting the demonstrations of 1968, globalization to the French will always be "Anglobalization." But when Americans start to question the wisdom of international economic integration, something serious is afoot.


For years, Lou Dobbs of CNN has used his prime-time show to lambaste the Bush administration for its failure to stem the flow of illegal immigrants — most of them Mexicans — into the United States. But only in the last few weeks has the bee in his bonnet turned into a full-scale political swarm.


U.S. senators are at loggerheads over a bill to create a new system of guest workers that would also amount to an amnesty for current illegal immigrants. Meanwhile, legislators in the House are calling for the construction of an impenetrable fence along the U.S.-Mexican border — a kind of cortina de acero (iron curtain).


This backlash against porous borders is not confined to the issue of immigration, however. Simultaneously, Congress has been busy trying to tighten the rules governing foreign investment in the United States, ever since the story broke that a company based in the United Arab Emirates might gain ownership of facilities in American ports. Then there are the protectionists, who generally represent states with big manufacturing centers. They'd like nothing better than to slap a whopping tariff on Chinese imports.


So global flows of labor, capital and goods are all under attack — and this in a country that has been enjoying robust growth for the better part of five years. I shudder to think what would be coming out of Congress if the country was in recession. Presumably a bill for total autarky, mandating the construction of a vast, impermeable dome from sea to shining sea.


The last time globalization died, some historians say, it was an American backlash that killed it. A century ago, the world economy was in many ways just as integrated as it is today. Migration rates were comparably high, as was trade in relation to output. Capital flows today are bigger in relative terms, but a century ago they were more evenly distributed between rich and poor countries. After 1914, however, globalization fell apart, and by the 1930s the world economy had fragmented — with disastrous consequences for growth and employment.


The great disruption caused by World War I certainly did a large part of the damage, sinking thousands of tons of merchant shipping and severing international telegraph cables. Even before war came, however, globalization was already dying the death of a thousand legislative cuts. As early as 1882, the United States had introduced the Chinese Exclusion Act, the first of a series of measures designed to restrict immigration to white Europeans. Quotas for other ethnic groups were introduced between the wars so that by the mid1930s, the flow of new immigrants to the U.S. had all but dried up.


The same was true of trade. Never wholly committed to free trade in the 19th century, the United States sharply raised tariffs between the wars. The protectionist Smoot-Hawley trade bill that was enacted in June 1930 dealt a lethal blow to business confidence, compounding the damage done by the Wall Street crash.


Proponents of a new generation of anti-global measures claim to want to protect vulnerable native groups from the ravages of competition. They point to studies that show the biggest losers from immigration to be high school dropouts. Other evidence shows that it's unskilled blue-collar workers who are most likely to lose out from free trade with China.


Yet it would be an error to blame the widening inequalities of American societies on globalization and to seek to rectify matters with the old, failed policies of nativism and protectionism. American inequality has much more to do with not-very-progressive taxation and patchy welfare provisions than with immigration and free trade, much less free capital movement (without which, let's not forget, American consumption would have to be quite drastically reduced, given the vast size of the U.S. current account deficit).


The aggregate economic benefits of attracting the economically ambitious from around the world are real. In a flexible labor market like that of the United States, immigrants play a key role. In aging societies like those of Western Europe, immigrants are especially needed. True, it's not clear if Europe's over-regulated labor markets can successfully absorb and exploit their youthful energies. But that doesn't change the basic economic logic. An even more liberalized global labor market would boost economic growth all round. Restrictions on migration would cut it.


It makes no sense to jeopardize the benefits of globalization to protect the employment prospects of high school dropouts. So here's a modest counter-proposal for the House of Representatives.


Instead of building an expensive, hideous and probably ineffective new Iron Curtain, why not use the money to get this simple message across to the kids in American high schools: If you flunk, you're sunk. Yes, boys and girls, academic achievement is the only route to decent employment in an economy at the top of the technological food chain. Drop out of education without qualifications, and you'll be lucky to get a job alongside the Mexicans picking fruit or stacking shelves.


Sounds kind of harsh, I know. But a second Great Depression sounds a lot harsher.

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Niall Ferguson is a professor of history at Harvard University. He is the author of "Empire" (Basic Books, 2003) and "Colossus" (Penguin, 2004). Comment by clicking here.

04/04/06: So many ‘special’ friends
03/28/06: Let's get it right about what has gone wrong
03/21/06: Congress is trying to give the world a globotomy
03/14/06: Lame ducks can still bite back
03/07/06: A 19th Century critique of a 21st Century president
02/28/06: The crash of civilizations
02/21/06: Not the president, but close
02/14/06: Want historic trouble? Look south
02/07/06: Greenspan advising Britain? It's housing bubbles, deficits and potential meltdowns all over again
01/31/06: Missing the Cold War
01/24/06: It's a sick, Thick World
01/17/06: Tomorrow's world war today
01/03/06: Scotland, it's over, but keep the accents
12/20/05: History, democracy and Iraq
12/20/05: History, democracy and Iraq
11/22/05: Ghost of Napoleon haunts Tony Blair
11/22/05: Can it happen in Britain too?
11/15/05: Red plus blue equals purple
11/10/05: The fires of disintegration
11/01/05: Triumph of an über-wonk

© 2006, Los Angeles Times Distributed by Los Angeles Times Syndicate

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