Globalization Didn’t Fail America — Washington Did: by Professor C. Justin Robinson

Few topics ignite more partisan heat than globalization. For decades, Leaders in the United States (U.S.)have blamed it for shuttered factories, lost jobs, and stagnant wages. From Ross Perot’s “giant sucking sound” in the 1990s to Donald Trump’s “America First” tariffs, the political narrative has been straightforward: globalization hurt the United States. But like most convenient stories, this one is only half true.

Yes, globalization disrupted American manufacturing. It forced painful adjustments in factory towns and exposed weaknesses in social safety nets. However, it also provided America with cheaper goods, sparked innovation, and helped the U.S. maintain its global economic leadership. The uncomfortable truth is this: globalization was not the problem. The failure to manage it was.

The Numbers Do Not Lie — The U.S. Is Wealthier

Let’s start with the facts. Since the 1970s, U.S. per capita income has more than doubled—from $26,000 in 1970 to over $65,000 in 2023. Real GDP grew steadily, even after accounting for slower growth post-2000. And despite fears of a global “race to the bottom,” the U.S. unemployment rate fell from over 6% in the 1990s to around 3.6% today. That is not what national decline looks like.

Critics often point to the disappearance of manufacturing jobs—about five million lost since 2000. But this does not tell the whole story. Manufacturing output increased during the same period, thanks to advancements in automation, robotics, and efficiency improvements. Meanwhile, the economy added millions of jobs in technology, healthcare, and the service sector. Globalization did not kill jobs. It changed them.

Where It Went Wrong: Inequality and Inaction

So why does it feel like something went wrong? Because it did—just not in the way populists claim. While globalization expanded the economic pie, it did not slice it evenly. The top 1% have seen their incomes soar by over 200% since 1980. The bottom 50%? A modest 40% gain. Median wages remained flat for years, especially in communities without access to higher education or technology jobs. The result was a tale of two Americas: coastal cities booming with opportunity, while rural towns and industrial centres faded into economic uncertainty. This was not inevitable. Countries like Germany invested in retraining and built support systems to help workers transition. The U.S. did not.

Washington failed to plan for the future. It pushed for free trade agreements without mitigating the impact. It dismantled unions, underfunded job training, and ignored the warning signs from Main Street. Globalization was not the villain. Neglect was!

The Tariff Trap: Fighting Yesterday’s War

President Trump’s tariffs in his first term were sold as a way to “bring jobs back home.” In reality, they made steel more expensive, disrupted supply chains, and hurt small businesses. His successor, President Biden, retained many of those tariffs—despite minimal reshoring and rising costs for American consumers. Trade wars may win votes, but they rarely win economic battles.

And even where jobs have returned, automation has taken over. The factories coming back need far fewer workers than the ones that left. Meanwhile, reducing immigration has created labour shortages in agriculture, logistics, and technology—sectors where American competitiveness depends on a robust and diverse workforce.

Where We Go From Here

Globalization is not going away. Instead, it presents an opportunity for us to shape it in a way that benefits more people. The potential is there, we just need to seize it.

That means:

The Real Reckoning

Globalization did not hollow out America. It revealed what was already hollow. The failure was not in trading with the world—it was in not preparing people for it. As we look to the future, we must stop chasing the ghosts of a pre-globalized past and start building a fairer, forward-looking economy. One that includes the factory worker, the tech coder, and everyone in between. Because the real test of a nation is not whether it can insulate itself from change—but whether it can rise with it.