Economic Isolation

There are some in this country who think the country is better off in isolation.

This was sometimes our official policy prior to World War 2 where we became aware of the global implications of such a policy.

To try to prevent another war of that magnitude we adopted a policy of alliances around the world to contain our perceived enemies, primarily the communist states.

While we did have some bloody regional conflicts, which didn't resolve anything but also didn't escalate into a world wide conflict.

The alliances slowly became as much economic as military, and as the countries ravaged by WW2 and undeveloped countries built up, our hegemony over trade began to slip.

As the most prosperous nation in the world, with the largest markets it was much easier for other countries to sell products to us then us to them.  We had more money and more consumers.

Over the years we forged strong economic alliances in which world trade was expanded and while we saw some trade imbalances, the outcome was greater prosperity for all.

Not necessarily every person, economics doesn't work like that.

Its ultimately a great leveler, moving work to those who have the lowest cost and making the markets very competitive.

In a truly free trade system, the adjustments could be very painful as industries were overcome by international competition, so countries did adopt certain protective tariffs.

Still, we had a general system where trade among us and our allies moved relatively freely.

In any such system, all sides have to comply with the rules and we have set up systems which are supposed to determine that the rules are followed.

In all of this, we served as the example of a free people espousing principles and following them.

No more.

We are now the nation that wants to manipulate the rules so that the economic forces at work are changed in our favor.

Its the end of an era as we once again start to espouse isolationism.

It has never ended well in the past.