But we don\’t want to regulate globalisation

Nick Clegg makes an error of logic here.

More precisely, it is a crisis created by the woeful gap between the globalisation of finance, of trade in goods and services, and the rules and institutions designed to regulate the global economy.Global economic integration has outstripped the rules made to tame it. So any political vision for the future must rest on a plan to create new international rules.

We don\’t want to either regulate or tame this globalisation.

What\’s happened in the last few decades is that hundreds of millions have risen up out of destitution, the largest reduction in poverty ever in the entire history of our species. It\’s precisely because economic activity has been unregulated, because things have been outside of the power of politicians to interfere, that this has been possible.

Given this, given the most successful reduction of human misery ever is a result of not having politicians sticking their oar in, why would we want to change to a system where politicians can stick their oar in?

4 comments on “But we don\’t want to regulate globalisation

  1. Remind me which bit of the crisis wasn’t being regulated? Some people will never learn that ever more regulations may not be the answer.

  2. “Global economic integration has outstripped the rules made to tame it. ”

    And we owe thanks for that.

    Isn’t it rather the point that economies always outstrip the ability of a bureaucracy to fully regulate them – even at a micro level like a county or province, or family?

    And isn’t it always the threat that bureaucracies never stop trying to catch up?

  3. Are you sure the economic activity was unregulated? Most of the gains were in China, which maintained (and in some ways maintains) a currency peg & capital controls.

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