The benefits of free trade and globalization have been a mystery to most Americans. Last spring, Monmouth College polled 500 registered voters in 8 Midwestern states and found a widespread antipathy towards globalization:

• 64% of Midwesterners feel the region has lost more than its gained from globalization while just 20% feels it has gained more than its lost,
• 66% feels that globalization is bad for the Midwest because it subjected American companies and workers to unfair competition and cheap labor while 22% feels globalization is good because it opened up new markets for American products and resulted in more jobs,
• 72% feels globalization has harmed manufacturing in the Midwest,
• 65% believes U.S. trade with other countries has reduced jobs in the Midwest while 19% believes global trade has led to job creation in the Midwest,
• 61% sees China as a threat to jobs and economic security in the Midwest while 22% sees China as an opportunity for new markets and investment,

But, the economic debate among presidential hopefuls often centers around the benefits of global trade and protectionism to save jobs. Protectionism to save jobs can only work in the short-run and makes America less competitive. We cannot hold back globalization with undermining America’s role in the world economy.

Obviously, those of us who see government interfering and inhibiting business expansion play a vital role in convincing the doubters of benefits of greater free trade policy.

The job is difficult but doable.  The argument centers on what drives job creation. When a plant closes in Illinois the average citizen blames global trade. The results of the Monmouth poll confirm this hypothesis. Midwesterners have an immediate and visceral reaction to a company’s drive to cut costs.  Yet all Americans enjoy the benefits of globalization in the form of lower prices and job growth when companies expand their business and export activity. We forget the average American enjoys one of the highest standards of living in the world. Middle class Americans are part of the top 1% when you consider standard of living in the rest of the world. The problem is the benefits of globalization are not immediate and less visible to the average US citizen.

Leaders of business, education, government and other key stakeholders need to be more proactive in pointing out these benefits.  I encourage policy makers and business leaders to share the promise of future global opportunities and highlight our competitiveness rather than focus on areas where we are less competitive.

For example, US technology and life science companies lead the world. Four of the top ten agricultural exporting regions are located in the US.  We have the best foundation for commercial activity in the world with intellectual property protection, bankruptcy laws, and transparent political system of rules and regulations. As a result, Americans can monetize their assets to a greater extent than almost any other people.

Our system is not perfect, but much of the imperfection comes from over regulation and demands for fairness, not flaws in our systems supporting free trade. Much of the fault for the mortgage crisis came from policy makers arguing for more government support of home ownership for those not financially qualified to obtain mortgage loans.

Globalization has other benefits. We must expand educational and cultural exchanges. Why? These educational opportunities enhance our understanding of those we sell to and encourage the free movement of people as an entrepreneurial force for growth.  We can’t be competitive unless we “stay in the game”.

Union leaders and many liberal policy makers argue the US has lost more than other countries since the advent of more open trade and globalization.  But, our nation possesses some of the most valuable resources in the world: an industrious people, a strong entrepreneurial spirit, and the world’s leading institutions of higher learning.

Let’s redefine the term globalization and free trade as “positives”, the critical ingredients to remaining the best economy in the world.