Much of America’s political decay can be attributed to the majority of the population taking the basics of our current world order for granted.
In the aftermath of the cataclysmic Second World War, a new world order was ushered in, largely shaped by the principles and practices of the United States. This was not merely a geopolitical reshaping but a profound economic and ideological restructuring that has since governed international relations and economic policies. The liberal economic order, characterized by free trade, open markets, democracy, and the rule of law, has been central to this transformation. It is important to acknowledge and defend the numerous, though often subtle, benefits this order has conferred on global stability and prosperity.
The reconstruction of Europe, largely through the Marshall Plan, is a testament to the effectiveness and benevolence of the liberal economic order. By funneling aid into war-ravaged Europe, the United States did not merely aim to rebuild a continent but to reshape it in the image of democratic governance and market-oriented economies. This was a strategic move to prevent the spread of Soviet communism and to create a stable, economically interlinked world that would foster peace and deter future conflicts. The success of this endeavor is evident in the rapid recovery of European nations and their subsequent economic growth, which have been pivotal in maintaining global stability.
Critics often overlook the myriad small and intangible ways in which the liberal economic order benefits our daily lives. The principles of free trade and global cooperation have facilitated an unprecedented level of innovation and technological advancement. The freedom to trade across borders has allowed countries to specialize in industries where they hold a comparative advantage, thus optimizing global resource allocation and reducing costs of goods and services. This, in turn, has led to an increase in living standards worldwide. Moreover, the proliferation of democratic norms has fostered greater political stability and reduced the likelihood of authoritarian exploitation and conflict.
It is easy to take for granted the relative peace and order of the current world, especially when one considers the broad sweep of history. For much of human existence, societies have been mired in cycles of conflict, tyranny, and economic insularity. The periods of peace were often punctuated by wars of conquest or ideological dominance. The liberal economic order, however, has created a framework for peaceful coexistence and cooperative competition. Countries are now more likely to engage in economic negotiations rather than military confrontations, and disputes are frequently resolved through international institutions like the World Trade Organization.
The liberal economic order also promotes a rule-based system that upholds contracts and property rights, essential for economic activities and investment. This predictability encourages entrepreneurship and attracts foreign investments, driving economic growth and technological innovation. Moreover, the transparency required in democratic systems fosters a level of trust among nations, which is crucial for international cooperation.
Despite these achievements, the liberal economic order faces significant challenges and criticisms. It is blamed for inequalities both within and between nations, cultural homogenization, and the undermining of sovereign economic policies by multinational corporations and international institutions. While these criticisms hold merit, they do not necessitate the abandonment of the liberal economic order but rather its thoughtful reform. Addressing these issues requires a careful balance between global cooperation and the respect for local traditions and autonomy.
To discard the liberal economic framework would be a grave mistake, for its alternatives—protectionism, isolationism, autarky—have historically led to economic inefficiencies and increased conflict. The challenge, therefore, is not to reject the liberal order but to enhance its inclusivity and adaptability, ensuring that it serves the broader goals of global welfare and justice.
The liberal economic order, while fostering global stability and prosperity, faces significant threats from various quarters, particularly from ideologues and populists who challenge its foundational principles. These figures often capitalize on economic discontent and cultural fears to promote a more isolationist and protectionist agenda. A prominent example of this trend is Donald Trump, whose presidency highlighted a stark departure from several core aspects of the liberal economic order.
During his tenure, Donald Trump advocated for, and implemented, a series of policies that directly contravened the ethos of free trade and international cooperation. His approach was marked by a skepticism towards multilateral trade agreements and a preference for bilateral dealings that he believed would better serve American interests. The withdrawal from the Trans-Pacific Partnership (TPP) and the renegotiation of the North American Free Trade Agreement (NAFTA) into the United States-Mexico-Canada Agreement (USMCA) were indicative of this stance. Trump’s imposition of tariffs on steel and aluminum imports, even from long-standing allies, further strained international relations and disrupted global supply chains.
Trump’s rhetoric and policies reflect a broader populist critique of globalization that blames it for job losses and wage stagnation in industrial sectors. This perspective resonates with a significant portion of the electorate, particularly in regions that have suffered from deindustrialization. By promising to return manufacturing jobs and reduce foreign competition, Trump tapped into a deep vein of economic nationalism and discontent with the status quo. However, such measures often overlook the broader benefits of open markets and risk precipitating trade wars that ultimately harm all parties involved.
Moreover, the disdain for international alliances and institutions under Trump’s administration undermined the diplomatic and cooperative mechanisms that are crucial for maintaining the liberal economic order. His skepticism towards NATO and the United Nations, for instance, signaled a shift towards unilateralism and a disregard for the collective security and economic frameworks that have helped to sustain global order post-World War II.
The rise of populism under leaders like Donald Trump poses a fundamental challenge to the liberal economic order by promoting a simplistic narrative that national problems can be solved through insular policies and by disengaging from global systems. Such ideologies not only threaten economic stability but also erode the democratic values of openness and cooperation that are essential for managing global issues like climate change, pandemics, and international security threats. Addressing these challenges requires reaffirming the principles of the liberal economic order while also ensuring that its benefits are more equitably distributed to mitigate the economic disparities that fuel populist discontent.
Defending the liberal economic order is not an endorsement of its imperfections but a recognition of its fundamental contributions to establishing a stable, prosperous, and relatively peaceful international system. It has enabled the flourishing of democratic institutions, the reduction of poverty, and the advancement of human rights. While it is imperative to critique and improve the structures that govern us, we must also appreciate and sustain the framework that has, more often than not, guided humanity towards progress and cooperation rather than conflict and division. This defense of the liberal economic order, therefore, is not merely an intellectual exercise but a pragmatic acknowledgment of its significant, though sometimes understated, successes.
