The global financial meltdown and the demise of some securities and exchange traded funds (ETFs) has put Wall Street under a microscope, capitalism on trial and constructed a huge speed bump to the world of globalization.
President Obama’s stimulus plan may have some protectionist measures, which are common in times of dyer need, embedded along the way. In fact, protectionism prevailed during the Great Depression in the 1930s and it is understandable that a nation should want to protect their own businesses, citizens and employees before anything or anyone else.
Unfortunately, this philosophy’s track record isn’t the greatest. Some believe that protectionism turns recessions into depressions. The good news is that governments around the globe are making the right noises and going against this historically devastating policy, states Ruth Sunderland of The Observer.
Additionally, Aaron Task of Tech Ticker states that this backlash against globalization has arisen for the following reasons:
- Anti-U.S. and anti-capitalism rhetoric of the Davos Summit, most notable from China.
- Protests in the U.K. against legal immigrants and Spain’s voluntary return plan where legal immigrants are being paid to return to their home countries
These are some pretty interesting and difficult times and only time will tell if this crisis is the cause of the demise of globalization or if it is just a hiccup in its progress.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.