Many of our course readings, in one way or another address issues of
in the global economy.
Milton Friedman, Johan Norberg and
Jagdish Bhagwati, for example, share one general perspective; Bruce Scott and Joseph
Stiglitz share a contrasting view.
What are the central elements of each position?
what ways are the ideas of Adam Smith and John Maynard Keynes relevant to these
What is your view on the key issues raised in the debates and why?
Friedman, Norberg, Bhagwati:
Milton Friedman –
FREEDOM TO CHOOSE
Favors free trade, global liberalization, open markets, deregulation (limited
government role), and free capital flows (differs from Bhagwati)
“I love globalization”
The process by which people, information, trade, investments,
democracy, and the market economy are tending more and more to
cross national borders.
This internationalization has made us less
constricted by mapmakers’ boundaries
Freedom to choose:
As long as we are at liberty to pick and choose, there is nothing wrong
with certain forms of voluntary cooperation growing large through
We don’t have to shop with the big local company; we can turn to a
We don’t have to work for the village’s one and
only employer; we can seek out alternative opportunities.
have to make do with local cultural amenities; the world’s culture is at
We don’t have to spend our whole lives in one place; we
can travel and relocate
Globalization is empowering
Many feel powerless in the face of globalization, and that feeling is
understandable when we consider how much is determined by the
decentralized decisions of millions of people.
If others are free to run
their own lives, we have no power over them.
That kind of
powerlessness is a good thing.
No one is in the driver’s seat, because
all of us are steering
Economic liberalization a result of ultra-controlling governments
Deregulation, privatization, and trade liberalization, however, were not
invented by ultra-liberal ideologues.
Instead it is the pragmatic, often,
anti-liberal politicians, realizing that their governments have gone too
far in the direction of control-freakery, who have for this very reason
begun liberalizing their economies
Jagdish Bhagwati -