| As during financial crises of the past, the current economic recession has witnessed a dramatic increase in government intervention in the economy, coupled with a tremendous decrease in global trade flows. By examining the contemporary rise in economic nationalism as well as the political sources calling for protection in a historical context, this thesis highlights the potential dangers of closing borders to foreign goods and services. Through a comparative analysis of both the American and French responses to the financial crisis, this essay argues that while government intervention is frequently necessary and worthwhile, several protectionist actions included within stimulus packages have actually served to deepen the recession. Ultimately, this paper concludes that while the tendency towards protectionism demonstrated in recent months is discouraging, the world's trading system has fortunately not collapsed underneath the combined pressures of politics and economic nationalism. |
