The Global Economy

A Good, But Not Perfect, System

By: Ryan Webb

Narrated by: Virtual Voice

While globalization is not a perfect economic system, it has been overwhelmingly beneficial to the world. According to Thomas Friedman, the “Golden Straightjacket” of market capitalism benefits you the more you tighten it (Lexus and Olive Tree). The system promotes competition and rewards those who work the hardest with a better standard of living. Still, Noreena Hertz, in The Silent Takeover, focused on the negatives of the system, arguing that it drowns democracy and leaves too many people in the hole of poverty. In addition, author Paul Blustein focused on the complexity of the global financial system, which came close to meltdown during the Asian financial crisis. While the negatives of the market point out areas for improvement, capitalism’s ability to provide people greater choices and improve quality of life clearly outdoes the negatives.