Reply To: Does globalization promote inequality?


What about what happens in within countries?

Let’s take a hypothetical scenario:

Country A is rich and Country B is poor with a lot of equality.

B opens its economy and invites investments from A and the ruling elite is replaced by a new class of entrepreneurs. These entrepreneurs will then go from being in the bottom to being in the top. The actual living standards of the the poor will also be raised but the few entrepreneurs will surely be much much better off no matter what the poor does. In this sense is it not correct to say that globalization increases inequality in a country even if it equalizes it between countries A and B?

I mean I remember Friedman and other free market people basically making the point that you can live in a closed economy and where most people are somewhat equally poor or in one where everybody is better off and some in the top are much better off. Although my teachers assume a priori that inequaliy=bad and this is assumed but my assignment is a purely analytic one. I am not to make ethical judgements here.