Donald Trump and Bernie Sanders have demonstrated that a large number of Republicans and Democrats are concerned about the economic and social impact of globalization. Populism is on the rise in both political parties. It takes different forms in each party, but the underlying problem is that the benefits from globalization have not been equally distributed. Many citizens believe that our political parties are aligned with the interests of multinational corporations. Populism, blended with nationalism, is on the rise in the US and in much of Europe. Economists have traditionally supported the concept of free trade. However, millions of manufacturing jobs have been lost in the US and those jobs have not been replaced by equal or better employment opportunities. Moreover, one of our major political parties has actively resisted the introduction of government programs that might ameliorate the economic damages from globalization. This article provides a historical perspective on how economists have attempted to explain the changes that have taken place in the labor market. Less attention is being placed on the impact of technology on the labor market and many economists are turning their attention to the problem of poorly managed globalization.
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