Globalization, the vast offshoring of manufacturing that shuttered American factories and destroyed blue-collar jobs, was already faltering before Trump came along with his trade wars and tariffs, followed by pandemic disruptions of supply chains that turned out to be more fragile than anyone suspected. Then, on Biden’s watch, Russia invaded Ukraine and was kicked out of the West’s economic system, with impact beyond Russia’s economy.
The CEO of BlackRock, a giant investment firm (profile here), thinks the war will end the globalization we’ve known by causing “governments and companies to examine their reliance on other nations,” CNN Business reported on Thursday, March 24, 2022 (read story here).
While not mentioned in CNN‘s brief article, there’s concern over a possible Chinese invasion of Taiwan, which produces over 60% of the world’s semiconductors and over 90% of the most advanced semiconductors (see story here). Because of that, some of that production is being relocated outside Taiwan (see story here).
The globalization idea is based on erasing economic borders. But with geopolitical tensions escalating, and a new Cold War in the offing, the free movement of investment capital, money flows, people, and trade goods is hitting roadblocks at political borders.
How many traditional jobs will return to the U.S. remains an open question, though. And they won’t be the lost jobs of the past; even factory jobs now require computer skills. But who doesn’t have those?