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Does economic nationalism have a place in the aftermath of the corona virus?

May 20, 2020

Globalization is not a new phenomenon. In fact, long distance trading was a matter of centuries and millennia. However, the globalization of the past 25 years is truly unprecedented. The world has reached a different type of production, distribution and consumption. Today we are much more global than before. In many ways, this process has been very positive. In recent decades, this form of globalized capitalism has reduced product costs as much as possible thanks to the strong development of supply chains and logistics. Of course, globalization has its winners, but also its losers. And with this new world a new grudge was born. Nationalists are on the rise, and this trend could deepen in the aftermath of the corona virus. But, Do we really need that?

Of course, not everything is bad. Globalization is not an absolute bad guy. The thing is, not everything is good. Actually, You could say that we have a dual economic system ahead of us. When people criticize globalization, they are often right. The complicated thing, however, is that they are right to welcome the achievements of globalization. This obvious paradox is solved as follows: If you were a young professional who lived in the big city and worked for a large company, globalization is certainly the best thing that was ever invented. On the other hand, globalization is a devil punishment if you live and do manual labor in a small provincial town. The system has not helped everyone equally in recent decades. We live in a very divided world. Tell me where you live and what your job is and I will tell you who you will vote for in the next election.

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Does economic nationalism have a place in the aftermath of the corona virus?
Does economic nationalism have a place in the aftermath of the corona virus?

Donald Trump, Brexit and the trade war are consequences of this world that is divided around the topic of globalization. A New Yorker can perfectly understand the world of a Londoner. But it is very difficult for him to understand his compatriot from a small town in Texas. The differences are from heaven to earth. Londoners also find it difficult to reconcile with the inhabitants of the small towns of Wales or Northern England. In fact, this phenomenon is repeated everywhere. Do the residents of Milan agree with those of Sicily? That of Paris with those of the rural provinces? And so we can go country by country and see the same polarity of our dual system. The polarity is so great that it already generates sparks.

Populism has emerged in many countries and has managed to channel anger and frustration on the loser side into this whole issue of globalization. Sectors that have had no voice for many years are now “heard”. The political center that ruled most industrialized countries for many years is dwindling to make way for a policy of radicalism. This political center suddenly became too homogeneous for a long time, but it was no longer representative. The moderates on both sides of their governments promoted globalization through and through without taking collateral damage into account. So radicalisms have turned out to be a desperate reaction. This lack of representativity is partly responsible for the current anti-political and anti-establishment sentiment. Everything was done for the benefit of the big cities and multinationals, but they put everything else aside.

But all of these excluded sectors are now very upset and want revenge. I say revenge and not justice, because when we hear the politicians’ speech, we easily find that the topic is more visceral than anything else. Some politicians have managed to capture these social unrest to win elections. However, he started the fight successfully and gained power. However, it remains to be seen whether the strategies used will ultimately achieve the desired improvements. You have to be very careful with anger. Sometimes, Setting the ship on fire to kill the enemy also marks our own end.

The problem with radicalism is that it doesn’t understand intermediate points. And from a political point of view, we always get into a wrong dilemma. Authoritarianism or anarchy are not our only alternatives in matters of international order. Not every order is authoritarian and there is no lack of order freedom.

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This new political nationalism promotes economic nationalism. And the corona virus may be the perfect opportunity for its thrust. The quarantine showed us the systemic vulnerability of our production and distribution chains. The port industry is associated with a high risk. And lately people have started to realize that sometimes it’s not a bad idea to pay a little more, but to consume more homemade things. Obviously, excessive dependence on external factors is never a good thing. But beware of the extremes. Because despite the fact that our system urgently needs reform, economic isolation is a worse cure than disease. The world after the corona virus requires cooperation.

When we talk about cooperation, I am not referring to a new world order that is quoted in conspiracy theories. I mean cooperation. It can go even further. Could talk about a plan. The problem with plans, of course, is that we associate them with totalitarianism. However, we forget that it is possible to orchestrate plans in a fairer and more decentralized way. The world can reach consensus and agree on certain protocols without having to implement a totalitarian global system in the style of an Orwellian novel. If we avoid any form of cooperation because it is confused with authoritarianism, we will achieve anarchy. It’s kind of a wild west and in this game companies always win. Because the law of the strongest rules there and they, dear friends, are the strongest.

It’s hard to tell where Bitcoin is in all of this. We meet many libertarians in the crypto community. AND Libertarians in this new world of radicalism are in a very difficult situation. In the past, libertarians were slightly more to the right than to the left. This is because law has traditionally defended the reduction of the state and the free market economy. Today’s right wing has changed a lot. It turns out he’s now the populist right wing that surfaced with Donald Trump, and Brexit presents itself as the common man’s champion in a war against the establishment. Now it is promoting economic protectionism and not the free market. The enemies are the media, liberal elites, traditional politics, banks and large companies. In other words: globalization. Deregulation of the markets. The economic wild west.

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Libertarians are in the air now. Because they don’t belong to any tribe. Well, they never really were. However, they have always felt a certain affinity for their distant cousins ​​on the right side of the free market. With this right turn, the difficulty lies in reconciling the love of the free market with these anti-system feelings and the rise of economic nationalism. The solution that many have found is to say, “I am not a supporter of Trump, but I think he is right in …” This is because there is compatibility at the level of these little hearts, but at the theoretical level the brain perceives obvious inconsistencies in teaching.

Now I think Bitcoin as such would benefit a little in the Wild West, but not in its maximum splendor because it would sink under so much anarchy. On the other hand, it would harm itself in a scenario of isolation and protectionism in the context of nationalism. Excessive national rules would suffocate him. However, Bitcoin would benefit greatly from an interim solution. In other words, Bitcoin would shine in an image of international cooperation. Bitcoin is global and flourishes in a global system.