Globalization and the US Economy

On April 29, 2004 Robert T. Parry spoke with Investment Professionals in Honolulu to give his opinion as a monetary policymaker on globalization and free trade and the effect that it has on the U.S. economy. These remarks were later published as an Economic Letter from the Federal Reserve of San Francisco in May of that year. While addressing these persons, Parry argues through examples and statistics that globalization can in fact help to strengthen the economy rather than weaken it. Parry relies heavily on his experience in economics and international banking to demonstrate the validity of his argument for globalization and free trade. Based on his experience and knowledge, Parry presents a convincing argument for globalization and the positive effects that it can have within the U.S. economy.
Mr. Parry was president and chief executive officer of the Federal Reserve Bank of San Francisco and also served on the Federal Open Market Committee of the Federal Reserve System, both of which help to make him extremely qualified to present this argument. The tone of the article is greatly affected by his past experiences and helps to give an authoritatively convincing argument to the ongoing debate of globalization and its effect on the economy. He clearly states at the beginning of his presentation that his main concern is for the state of the economy and then begins discussing this. The tone throughout the article remains very professional and confident but without being arrogant or patronizing. His argument is presented in a very well structured and organized form and it is assumed his audience has somewhat of an understanding of the subject matter; given that it was prepared for a group of investment professionals.
While Parry’s extensive experience gives him the knowledge and understanding needed to convincingly present his views, he acknowledges that things are not perfect. This appeal to ethos makes Parry come across as a trustworthy source of information on the subject. When acknowledging the effects of globalization on U.S. workers and the policies in place he states, “I realize there’s some debate about how effective the programs are, but the concepts they’re built on are, to my mind, right on target—giving workers a safety net and giving workers the training and tools to qualify for the jobs being created in the U.S.” By recognizing these shortcomings and explaining why he feels they are not a reason to “throw the baby out with the bathwater”, Parry becomes a figure that perceives both the good with the bad and seeks out that which he believes is best for the people while maintaining the trust of his audience.
While not all effects of globalization are desirable, it is understood that economic activity flows in both directions as a result of globalization and free market strategies when applied correctly and appropriately. By recognizing and acknowledging this, he shows that he is not only concerned with how the United States fares, but that he has analyzed it on a larger scale and considered the rest of the world. This is something that not many Americans do. Many times we think only of ourselves but the fact that Parry recognized the positive effect that these strategies can have internationally demonstrate his good will and intentions in presenting his ideas so that all might benefit from what he views as being a source for good and progression to the world. Given that the title of the article states that the focus is whether globalization will help or hurt the United States economy, it was rather unexpected for him to speak of others as benefitting as a result to this.
The statements aforementioned are not just simply the ideas and opinions of Mr. Parry, but the result of much research and personal insight. Throughout the article he has included examples and statistics to illustrate the concept or idea that is being explained. This makes things become very clear for the audience. It is true that some statistics can be misleading, but the ones that Parry chose to include are neither superfluous nor exorbitant. They serve their desired purpose and appeal to logos with real world examples and applications of what is being explained. In one example he states that the US bought $77 billion worth of services from foreigners but also sold $130 billion worth of products and services in foreign markets; a number which is far greater. These statistics become very important to the article because much of what is written reflects the research and first-hand experience that Parry has done and had. The article becomes less opinionated and more informative due to these examples included in the article.
Having all the experience and numbers to back up what is said is fantastic but the nature of economics and international trade is rather complex. Parry employs the use of metaphor to help make it more understandable and clearer to the audience. In one example he likens the economy and well being of a country to that of a family; a family cannot produce everything necessary for its survival and also offers services and or goods to other families in order to meet their own needs. How a family lives and performs the functions needed to survive is something that everyone can relate to and understand what his point is. While this use of metaphor might appear to be something unnecessary because the audience has experience and understanding prior to hearing Mr. Parry, his place within the economic community allows him to make such a comment without it being seen as overly simple. While it may not have been as useful to the audience in that moment, his use of metaphor allows the reader now to have a better understanding of the subject matter.
There are many that may agree with Parry, and there are also many that may disagree with him. However, he has presented a convincing argument for globalization and examined the effects that it can have in our lives. His past experience greatly increases his credibility and chances of actually affecting his audience. Were Parry to be someone with little or no experience in the economic world, it would become increasingly difficult to trust in what is said. By employing these rhetorical tools skillfully, the effect of globalization and free trade on the United States economy has become less a mystery and more understandable so that others can decide for themselves whether or not they agree with it.