Today on Moment of Zen, Erik Torenberg and Noah Smith debunk the myth that globalization destroyed America's middle class, showing wages actually grew during hyperglobalization. It examines the limited "China shock" impact and critiques how both political tribes' technology fears may handicap America's competitiveness against China.



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HIGHLIGHTS OF THE DISCUSSION:

Main Argument



Myth: Globalization hollowed out America's middle class


Reality: Middle class moved UP income brackets; wages grew 40% during peak globalization


Real Causes



1973 oil shock caused wage stagnation (70s-80s), not globalization


China shock (2000s): Only 2M manufacturing jobs lost, limited scope


America vs. China



US: Less globalized than most countries; only 4% manufacturing trade deficit


China: Cities will look shabby in 30 years; exports falling as % of GDP


Political Technology Paralysis



Republicans: Fear hardware (solar, batteries, EVs)


Progressives: Fear software (AI, social media)

Both sides handicapping American tech leadership while China advances