Yes, globalisation 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 US maintain its global economic leadership. The uncomfortable truth is this: globalisation wasn’t the problem. The failure to manage it was.

The Numbers Don’t Lie — The US is Wealthier

Let’s start with the facts. Since the 1970s, US 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 US unemployment rate fell from over six per cent in the 1990s to around 3.6 per cent today. That’s not what national decline looks like.

Critics often point to the disappearance of manufacturing jobs—about five million lost since 2000. But this doesn’t 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. Globalisation didn’t 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 globalisation expanded the economic pie, it didn’t slice it evenly. The top one per cent have seen their incomes soar by over 200 per cent since 1980. The bottom 50 per cent? A modest 40 per cent 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 centers faded into economic uncertainty. This wasn’t inevitable. Countries like Germany invested in retraining and built support systems to help workers transition. The US 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. Globalisation wasn’t 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 labor shortages in agriculture, logistics, and technology—sectors where American competitiveness depends on a robust and diverse workforce.

Where We Go From Here

Globalisation 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: – Investing in people, not just industries. Job retraining, apprenticeships, and community colleges need actual funding and leadership.

– Strengthening the safety net, including portable benefits, wage insurance, and mobility support for displaced workers.

It’s time to negotiate smarter trade deals that protect labour rights, the environment, and fair competition. This will ensure that our international trade is not just beneficial for the economy but also for the people and the planet.

It’s crucial that we tell the truth, even when it’s complicated. The world has changed, and protectionism won’t bring back the past. By understanding and accepting this, we can move forward with informed decisions and actions.

The Real Reckoning

Globalisation didn’t hollow out America. It revealed what was already hollow. The failure wasn’t 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 preglobalised 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 isn’t whether it can insulate itself from change—but whether it can rise with it.

Professor C. Justin Robinson is a professor of Corporate Finance and Pro Vice-Chancellor and Principal of UWI, Five Islands.