New York Times columnist Thomas Friedman offered quixotic history which peddled the “Golden Arches theory” that no two countries hosting branches of McDonald’s would go to war with each other because of their mutually beneficial bonds of economic interdependence. Reducing barriers to trade and financial flows to a minimum and integrating China into the global economy, Friedman and like-minded pundits averred, was the best way to lift all boats and would benefit everyone, pretty much everywhere, regardless of wealth, skills, or location in the world. When queried about the ill effects, including increased economic inequality and job losses or wage reductions resulting from “outsourcing” production, Friedman et al. either glossed them over or replied that they would be outweighed by lower prices, greater innovation, and higher living standards created by increased competition and the optimal use of labour and capital.

Read the article.