Ever heard the buzzy headline "China gains, America loses" and wondered if it's really true? 📈➡️💸 According to fresh NBER research published this year, globalization isn't a win-lose deal – it can raise living standards everywhere, even if a country's slice of the world GDP pie gets smaller.
Economists Zhuokai Huang, Benny Kleinman, Ernest Liu and Stephen J. Redding dug into six decades (1960-2020) of global trade and productivity data. They found that as emerging giants like China ramped up production and trade frictions fell, the United States' share of global GDP did shrink. But here's the twist: U.S. well-being actually rose!
So, how does that work? 🤔 Simple econ 101: when big economies get more productive, they turbocharge global supply chains. More stuff gets made, prices drop, and varieties explode. That means cheaper goods for everyone – yes, including you scrolling on your phone in Jakarta, Bangalore or Manila.
Take fashion. Over the past few decades, the real price of clothes in the U.S. plunged. Season's latest drops, sturdy kids' outfits, even athletic wear – once pricier or near impossible to find – are now wallet-friendly. Lower clothing costs boost real incomes, especially for families budgeting every rupee or peso.
It's the same story for electronics and home appliances. Refrigerators, washing machines, microwaves, smartphones, smart speakers – you name it, it's cheaper and more reliable. Many of these products run through factories across Asia – be it Shenzhen, Ho Chi Minh City or Bengaluru – before landing on your doorstep. Every time you upgrade to a sleek new smartphone or snag a flash sale on earbuds, you're reaping the benefits of a more connected, efficient global market.
This research flips the "zero-sum" storyline on its head. Even if the U.S. share of world output dips, U.S. consumers and firms get better deals, wider choices and richer markets to tap into. That's real welfare gain – an econ-y way to say "everyone's better off."
For young pros in South and Southeast Asia, this means more affordable style, tech and gear. Globalization isn't about cutting slices – it's about baking a bigger cake. 🎂🌏 Ready to enjoy the feast?
Reference(s):
cgtn.com
