Back in 1994, Sir James Goldsmith had a clear vision of the implications of globalization on advanced economies. Now, 16 years later, his predictions have been confirmed: the middle class in the advanced economies has seen a constant lowering of its living standards, and without change in direction, it will continue to get worse.
It is true that globalization opens up the huge new markets of China and India, but what can we export if a lot of our industrial base has been moved oversees?
The unknown, the piece of information that Goldsmith lacked back then, is the implication of new technology on advanced economies. It is true that the middle class is earning less than 20 years ago, but, today, new technology allows us to access products or services for a fraction of the cost; think about having Wikipedia for free vs. having to buy an Enciclopedia back then.