The exponential rise of globalization in the past few decades has created winners and losers. Some of the losers are workers in the developed countries.Winners include corporations, capitalists, farmers, etc, in these countries. In addition, one of the biggest beneficiaries of globalization is the millions of workers in developing countries.

As the middle-class workers in the rich countries saw their jobs disappear and wealth accumulate in the hands of a few, they are revolting against the elite. Brexit in UK and the Trump victory in the US are two outcomes of the public’s rejection of the status quo. An article in Der Spiegel published yesterday discusses the impact of globalization in detail. From the article:

End of Globalization?

Now, though, those who have lost out are striking back, first in Britain and now in the US. And Italy and France could soon join them.

It is a fact that globalization and free trade have increased global prosperity, but they have also increased inequality in the world’s wealthiest nations. They have made the biggest companies more powerful, because business operates globally while politics tends to be a local or regional affair, and made the world more vulnerable to crises, because everything is networked and the debts of American homeowners could lead the entire world to the brink of collapse.

 

In short, globalization is responsible for a host of problems that would otherwise not exist. And it is therefore in the process of gambling away the trust of people around the world. Already today, global trade growth has slowed and state interference is on the rise.

The world finds itself at a turning point. It must try to eliminate the drawbacks of globalization without destroying its advantages. If, on the other hand, protectionism and populism gain the upper hand, there is a danger that global prosperity could shrink. The age of globalization would be at an end.

Source: A Turning Point for Globalization – Inequality, Market Chaos and Angry Voters, Der Spiegel

The entire article is worth a read.

Readers may also want to checkout After Trump’s victory China is the main strategic pillar for globalisation by Prof. John Ross of Renmin University of China.

The key takeaway is globalization is in itself not bad. But when the benefits of globalization does not reach everyone especially the workers then they will turn against the system that was meant to raise their living standards.

The US National Park Service (NPS) celebrated its 100th year anniversary on August 25, 2016. The creation of the great park system has been called  called “the best idea we ever had.” by the famous writer and environmentalist Wallace Stegner. Below is a neat infographics on the parks from the WSJ:

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Source: How Economical Are Our National Parks?, WSJ, Aug 26, 2016

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Lake McDonald in Glacier National Park

Source: NPS

The National Park Service has a special web page dedicated to the celebration of the centennial which can be found here.

The Great Smoky Mountains national park receives the largest number of visitors in a year. I think this is because of the entertainment-related attractions like amusement parks that lie just outside the park.

Wealth distribution or lack thereof varies across OECD countries. The US is the most unequal country in terms of household wealth distribution among the select countries shown in the chart below:

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Source: OECD

The richest 10% of the Americans own more than 75% of the total household net wealth.Crony capitalism, regulatory capture, corruption and other factors have led to the situation where the largest share of wealth created is extracted from workers and channeled to the upper crust of the society. This is one of the reasons why the frustrated “deplorables”voted against the continuation of the status-quo as represented by the Democratic party.