What is globalization? Is globalization a good thing or not. Well, I have an answer that may not surprise you: It’s complicated. This week, Jacob and Adriene will argue that globalization is, in aggregate, good. Free trade and globalization tend to provide an overall benefit, and raises average incomes across the globe. The downside is that it isn’t good for every individual in the system. In some countries, manufacturing jobs move to places where labor costs are lower. And some countries that receive the influx of jobs aren’t prepared to deal with it, from a regulatory standpoint.
There are many of the 35 videos in the Economics crash course set that touch on geographic issues, but I’d like to highlight episodes 16 and 17 especially. Many see globalization as the path to economic growth and others see the process of globalization as what has created poverty. In many ways both have a point as demonstrated in the 16th episode of this crash course. In a follow-up video, they explain the difference between wealthy inequality and income inequality. This video also has a nice layman’s explanation of the GINI coefficient and how it measures inequality.