Ferguson - Sinking Globalization

Nial Ferguson discusses the 19th and 20th century globalization period, represented by unregulated money, free trade, limited restrictions on migration, and inflation was low. This globalization period brought about many technological advances, such as the U-20 Submarine. This advancement in technology, however, brought catastrophic damage to the Lusitania. This is his first example of a fall or crash after a technologic advancement. He claims history repeats itself, yet every time it does we are shocked by the collapse. He also points blame at the "great illusion" many Americans possess, that movements like the Iraq war would be over quickly. We tend to think irrationally. Ferguson discusses the savings rate of .2% of disposable income in 2004, to 7.7% percent 15 years ago. With these low savings rates, investment is also down, creating the government to be more reliant on foreign countries for aid. With China buying much of our country's debt, it is dangerous because they will have a role in our government, he calls this relationship the "great-power rivalry." Ferguson, discusses the stakes of economic globalization.