ABSTRACT
In several places in earlier chapters I promised a more detailed discussion of trade theory and its relevance to the suite of economic problems faced (but not fully recognized) by the West. Let me begin by saying that, beyond doubt, free trade is a worthy ideal in an ideal world. The question that I have raised repeatedly is whether accelerated globalization driven by an alliance of profit-driven multinational firms and financial interests and given intellectual support by academics is really in the best interests of Western society in this imperfect world at this point in time. I don’t mean to claim that trade is a zero-sum game, nor would I deny that the trade concessions that strengthened the Asian Tigers have had other important benefits over the past four decades. Nor do I have any problem with the notion that neighboring Mexico should now be given trade concessions by the US or that neighboring Eastern Europe should be similarly treated by Western Europe. The socio-political argument for doing so is good, even if the economic argument is shaky. However, I draw the line – if a line must be drawn – at China.
