English original of article published on February 17 in Italian by La Stampa, following Mario Draghi's speech at the National Association for Business Economics on February 15
Excellent post Bill. One comment if I may. It is true that corporations exploited globalization as an easy way to boost profits (underestimating the risks of complex global supply chains). But I think governments were also responding to another pressure: extremely cheap imports were an easy way to boost consumers' purchasing power -- a bit like the pre-2008 boost to real estate was an easy way to make consumers feel wealthier. Both are easier strategies than boosting potential growth through reforms and investment. Blaming globalization, as you note, is much easier.
Excellent post Bill. One comment if I may. It is true that corporations exploited globalization as an easy way to boost profits (underestimating the risks of complex global supply chains). But I think governments were also responding to another pressure: extremely cheap imports were an easy way to boost consumers' purchasing power -- a bit like the pre-2008 boost to real estate was an easy way to make consumers feel wealthier. Both are easier strategies than boosting potential growth through reforms and investment. Blaming globalization, as you note, is much easier.