Taking Back Globalization
Marie Duggan ()
Review of Radical Political Economics, 2013, vol. 45, issue 4, 508-516
Many Americans believe free trade destroyed the U.S. industrial base, and blame foreign workers for taking their jobs. During World War II, Keynes had similar misgivings about the effect of postwar free trade on Britainâ€™s economy. Yet for Keynes, economic forces are never inevitable, and capital rather than labor was the cause of trouble. His 1941 proposal for an International Clearing Union suggested capital controls, forced creditor adjustment, and an international fiat reserve as remedies for deindustrialization. This framework channeled financing toward production rather than speculation, leading to a rising standard of living for workers. A counterfactual with balance of payments data for the United States and China since 1982 suggests his ICU would have prevented U.S. deindustrialization, while yet permitting export-led growth in China.
Keywords: Keynes; Bretton Woods; capital controls; deindustrialization (search for similar items in EconPapers)
JEL-codes: B22 E42 F55 N22 N25 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:sae:reorpe:v:45:y:2013:i:4:p:508-516
Access Statistics for this article
More articles in Review of Radical Political Economics from Union for Radical Political Economics
Bibliographic data for series maintained by SAGE Publications ().