Every month, millions of travelers pass through the Hartsfield-Jackson Atlanta International Airport or consume goods that arrived through the Port of Savannah.
These places exist because the United States built a global trading system, and that system is moving out without us.
Ever since the end of the Cold War, the world’s economies have been deeply intertwined, fostering peace. This “peace dividend” allowed for decades of mostly uninterrupted economic growth around the world.
This is now changing, as the average American is spending record amounts on everyday goods. We often take for granted the cheap price of a T-shirt or a book, which might cost many times more if made entirely in the United States. The era of globalization seems to be shifting to a smaller club, and the U.S. is not in it.
At the World Economic Forum in Davos, Switzerland, in January, the tone has changed drastically. Instead of pushing for more integration, countries looked to reshore production or revise their supply chains.
Prime Minister Mark Carney became the first Canadian leader to visit China since 2017, creating a new comprehensive trade deal between the two countries. Prime Minister Keir Starmer of the United Kingdom is working on a similar negotiation.
The European Union is collaborating with India to finish a trade deal nearly 20 years in the making, providing a free-trade agreement that would affect 25% of the world’s Gross Domestic Product. Now, what does this mean for the United States?
U.S. economy depends on international agreements
Credit: Handout
Credit: Handout
President Donald Trump is achieving what he pledged to voters: NATO spending is up, more U.S. companies are pledging to invest more in local manufacturing, and fewer foreigners are coming into the U.S
Still, this is causing huge harm to the U.S. reputation abroad. Silver and gold are at all-time peaks in both central bank holdings and valuation in U.S. dollars.
Europe is seeking to increase NATO spending by investing in local defense companies instead of those based in the U.S., and nations are starting to seek trade agreements elsewhere. By trying to improve U.S. sovereignty, we are alienating everyone else.
The issue is that our economy depends on these international agreements. The U.S. national debt is up to a record $39 trillion and growing — nearing the market capitalization of gold and silver, valued at $41 trillion.
The truth is that there’s simply not enough domestic investment to make up for the loss in international trust; U.S. residents’ net international position — or foreign financial assets and liabilities — currently amounts to a $27.54 trillion deficit.
Foreign investments are part of what makes Georgia great: Hyundai’s electric vehicle Megaplant represents a record $7.6 billion investment, employing over 1,400 Georgians.
U.S. is ceding its position as a global leader
It’s true: In many international agreements, the United States often gets the short end of the stick. But every single diplomatic or economic action we take to isolate ourselves is another opportunity for China to take over and absorb capital, create interdependency and set global standards.
The globalization movement that the United States started with the Marshall Plan to rebuild Europe after World War II is being continued without the U.S., and we simply can’t afford that.
Georgia is one of the most vulnerable states to breaking these international ties: the Hartsfield-Jackson Atlanta International Airport and the Port of Savannah could have their income reduced, and companies like Hyundai might reduce or cease funding for new manufacturing investment.
If globalization continues without the United States, Georgians will feel it first: with slower growth, fewer jobs and lighter wallets.
Alejandro González-Betancourt is a student at the Georgia Institute of Technology, focusing on trade and economic policy.
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