Geo-economics in the age of Trump

The link below goes to an extremely interesting article by Michael Lind titled "The Return of Geoeconomics". It speaks for itself, but here is a short summary…

"Free trade" is a sham, or at the very least a temporary anomaly. Neither the British Empire nor the United States were for "free trade" when their industry was still weak. Only later did these imperial powers start to promote it - since by that time they could dominate the world market and turn any competitor into a producer of cheap raw material for their advanced economies.

The United States would never have become a great power if it had heeded Adam Smith´s advice and followed a free trade policy. Alexander Hamilton´s protectionist course was the right one. Friedrich List in Germany was also right.

When an empire becomes globally dominant, there is a temptation among the financial elites in particular to stop promoting de facto nationalism in favor of *actual* free trade. The financial elite is replenished by former manufacturers. This weakens the imperial superpower. The US has progressively weakened its position in this manner, in latter years by lucrative trade with China. In reality, this has mostly benefitted the Chinese.

Two strategies are possible for the United States in the present situation. One is to regroup and create a smaller Western-dominated free trade bloc by excluding China. This was Barack Obama´s strategy to some extent. The other is full nationalism. This is Donald Trump´s strategy. Trump is harking back to Richard Nixon.

The Obama strategy won´t work due to opposition from India. Why should India accept being a subordinate producer of cheap goods in a US-dominated global bloc? Therefore, the Nixon-Trump strategy is the best one.

"Realism" in foreign policy cannot be divorced from economic considerations. There is a direct connection between diplomacy, military security and the economy.

Empires which don´t see the above will fall. The British Empire is a case in point. The United States might be next.

The above was recently published in "The National Interest", previously a Neo-Con publication!

The Return of Geo-economics