Research by two
Rutgers Law School professors traces the economic
and cultural roots of populist and nationalist movements in the
United States and Europe, including the United Kingdom’s “Brexit”
vote to withdraw from the European Union, the rise of the
extreme-right parties in France and Germany, and the election of
Donald Trump as president of the United States.
Ari Afilalo and Dennis Patterson suggest that throughout the
Western world, and especially in the United States, people are angry
that they haven’t benefited from globalization.
In the United States and other Western countries, Afilalo and
Patterson say there has emerged what they call a “chronically
excluded class” that has lost the economic security that it enjoyed
in the 20th century. Afilalo and Patterson say the “chronically
excluded” have reached the boiling point, and they’re angry
because there are currently no opportunities to regain economic
security.
“People have a right to be angry because they have not benefited
from globalization in a way that the top tier of society has,” says
Patterson, the Board of Governors Professor of Law at Rutgers Law
School’s Camden location.
Afilalo and Patterson say the U.S. government is failing to
provide its people with social and economic security because it uses
obsolete policy tools from the 20th century. They cite the federal
government’s policies after World War II, when the government
delivered economic security by relying and legislating around a base
of corporate employers providing a massive supply of stable careers
in manufacturing, services, and other jobs.
“It used to be that you go to work for a corporation and you
were a loyal employee for your whole life, you got a pension and you
were good. That paradigm is gone and it’s not coming back,” says
Patterson. He says part-time work, platform economy, and moving from
one job to another will replace the old workplace model. Patterson
says the federal government should be working on a plan to create
security for people in that environment.
According to Afilalo and Patterson, the Western nation-state is in
crisis because manufacturing and retail jobs were traded away to
emerging economies. They also point to other changes, such as
automation and the platform "gig" economy eroding the
career-based model of work, the skills gap between the new type of
jobs created in large quantities and the declining middle-class
workforce, and the fact that more than 90 percent of new entrants in
the global middle class come from Asia and other emerging markets.
Afilalo says half of the world is now middle class. “If I am in
Indonesia, I’m happy to become a member of the middle class. I get
my basic goods that I did not have before. If I am the same person in
Appalachia, then I am going down,” says Afilalo. “They are going
from manufacturing to the retail services industry, which is being
devastated with the advent of technology.”
Afilalo’s and Patterson’s findings are a part of a decade-long
research project on the role of a nation-state as the provider of
economic security and opportunity in globalized markets.
They say the U.S. government needs to revamp the way economic
policy is structured. They want a government that enables economic
opportunity for the chronically excluded and provides social
protection that is not dependent on a career-type, long-term job.
Examples include a portable social account that would be a vehicle to
enable business in the gig economy, and public-private partnerships
to create jobs programs that train and link the chronically excluded
to the skilled job openings that abound in the United States.
Patterson and Afilalo say that some reforms to the trade system
are necessary, but that a return to protectionism would harm U.S.
interest. “If President Trump has his way, the economy will be far
worse off than it is now,” says Patterson. “Protectionism has
never resulted in economic growth.”
The results of their research will be included in a book by the
Rutgers–Camden scholars that’s scheduled for release in the fall
of 2018.
Patterson is teaching a course on contracts this semester. In the
spring, he’s teaching a seminar with former Rutgers Law School Dean
Ray Solomon on the changing nature of work and regulation, which will
cover globalization.
Afilalo teaches a contracts course this semester, and will teach a
globalization-heavy course in international trade and business
transactions in the spring that covers the international trade
system, international financial and investment rules, and the private
law of cross-border transactions.
For students interested in international law, Patterson suggests
that they study economics and political theory, and to travel widely.
Patterson spent the last eight years living in Italy while he was on
leave from Rutgers Law School and learned more about Europe and the
European Union. Afilao recommends that students learn one foreign
language. “Spanish and French are obvious candidates,” says
Afilalo, “But I also think that to the extent practicable a student
should strive to speak any language used in the Arab or Asian
markets; that would give her or him a great comparative advantage.”
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