Tuesday, July 03, 2018

Does It Make Sense to Leave an International System the USA Set Up?


Our government is in the midst of reacting to the World Order by overturning it - upsetting the apple cart, as it were.



Before we decide to junk the current system, Americans should understand that America defined and built the system. It was designed to reduce international conflict and wars, reward democratic behavior, and reinforce capitalistic systems. It was specifically designed as a counterpoint to Socialism, Fascism and Communism.

NATO was designed to bind the non-Communist countries of Western Europe into a single alliance so that they wouldn't go to war again. From a 1940's American perspective, this was because the two World Wars that Europe had fought in the previous 30 years, too many Americans had died and we spent too much money in "European" wars. NATO also provided a shield against Soviet provocation in Europe.  NATO and our system has lead to the "long peace" - 70 years without a war in Europe between countries.*

GATT (the General Agreement on Trade and Tariffs), which then transitioned into WTO (the World Trade Organization) has built up a framework for international trade that has increased the national wealth of every country that is part of it, including the United States. Especially the United States when you consider US companies operating overseas! The US set this up with our allies after WWII to avoid the trade wars that plunged the world into a depression in the 1930s. And no, trade without a framework will not stop trade wars. The percentage of the world economy that was involved with international trade was larger in the 1920s that it is now. In fact Germany and England were each others largest trading partners before World War 1, before they went to war.

I don't object to the idea of rethinking these commitments and international organizations, but there seem to be no "thinking" going on. Just knee-jerk reactions to some perceived slight.


*There have been civil wars and minor clashes - but no major war between state players.