Rising Tide

by Lawrence Edwards, Robert Z. Lawrence

2013 · Peterson Institute

In 1963, John F. Kennedy said that "a rising tide lifts all the boats. And a partnership, by definition, serves both parties, without domination or unfair advantage." US international economic policy since World War II has been based on the premise that foreign economic growth is in America's economic, as well as political and security, self-interest. The bursting of the speculative dot.com bubble, slowing US growth, and the global financial crisis and its aftermath, however, have led to radical changes in Americans' perceptions of the benefits of global trade. Many Americans believe that trade with emerging-market economies is the most important reason for US job loss, especially in manufacturing, and is detrimental to American welfare and an important source of wage inequality. Several prominent economists have reinforced these public concerns. In this study, Lawrence Edwards and Robert Z. Lawrence confront these fears through an extensive survey of the empirical literature and in depth analyses of the evidence. Their conclusions contradict several popular theories about the negative impact of US trade with developing countries. They find considerable evidence that while adjusting to foreign economic growth does present America with challenges, growth in emerging-market economies is in America's economic interest. It is hard, of course, for Americans to become used to a world in which the preponderance of economic activity is located in Asia. But one of America's great strengths is its adaptability. And if it does adapt, the American economy can be buoyed by that rising tide.

Inequality and Globalization

by Archawa Paweenawat, Robert M. Townsend

2024 · Princeton University Press

"Inequality and Globalisation focusses on how this problem can be resolved with the effective curation and analysis of integrated and consistent financial accounts. Using data from extensive fieldwork conducted in Thailand, Townsend and Paweenawat develop a model that reveals with precision important local heterogeneities in productivity and wealth that have previously been impossible to measure accurately. They also highlight the importance of economic measurement globally, and the inadequacy of the existing US information infrastructure especially, and point to the value of enabling researchers to conduct joint micro and macro analyses of household net worth dynamics to assess inequality of income and wealth more accurately. The authors draw conclusions that will help to inform policy around the world and improve the lives of individuals in the poorest areas"-- Provided by publisher.