HOMECOMING

An incisive study of how “the paradigm of globalization is now shifting.”

Globalization may have provided cheap consumer goods, notes Financial Times associate editor Foroohar, but there is an increasing awareness of the long-term costs. In her latest book, the author marshals an impressive range of knowledge to investigate the negative consequences of unquestioned globalization. The Covid-19 pandemic was a wake-up call to U.S. officials, revealing that the manufacture of even simple things such as cotton masks had been outsourced abroad, mainly to China. Fortunately, many American companies were able to structure their manufacturing processes to provide some of the needed goods. As Foroohar demonstrates, this revealed both the weaknesses and strengths of the U.S. economy. She accepts that globalization made many things cheaper for consumers, but she is realistic about the cost in the loss of jobs and resilience. At the same time, many companies have been cutting research-and-development spending and putting money into complex financial products—yet another example of short-sighted thinking. Much of the money and energy to support innovation has gone into the technology sector, and the result has been a “barbell economy” of big tech wealth and a “precariat” of low-paid service workers. However, Foroohar, who traveled the country as part of her research, sees an emerging generation of companies that have returned to making things in top-of-the-line factories that are making full use of 3-D printing and clever thinking. The author also sees a key role for government—not in splashing money around but in setting sensible trade rules and long-term objectives. Examining the industrial policies of other nations, Foroohar shares useful lessons. Ultimately, the pendulum has swung away from cut-price globalization toward more considered, localized perspectives. These are interesting, important views and ideas; hopefully, this book forms the basis of a new, cool-headed national discussion.

A careful, well-informed examination of where the U.S. economy stands, how it got here, and where it needs to go.