Virtuous Circle: Strengthening Broad-Based Global Progress in Living Standards

Publication Date: December 2007

Publisher: Center for American Progress

Author(s): Jonathan Jacoby; Richard Samans

Research Area: Economics

Type: Report

Abstract:

The Center for American Progress believes that the primary emphasis of U.S. international economic policy during the next phase of globalization must be to improve the quality of global economic integration and not simply its quantity. The United States should lead the international community in a cooperative effort to strengthen and sustain global economic growth while translating that growth more effectively into broad-based increases in living standards and purchasing power around the world.

The United States over the past 60 years succeeded in bringing large parts of the world into a liberal economic order, but our challenge today is to ensure that the rising tide produced by economic integration does in fact lift all boats. Just as it is important for us to strengthen policies at home and enforce existing standards to better enable us to contend with this increased competition, so it is important for us to take steps abroad to ensure that expanded trade and investment with developing countries to drive strong increases in their living standards and domestic consumption, which in turn will generate additional demand for our own products and services to produce further improvements in our own living standards.