At the dawn of the 21st century, countries in both the Global South and the former communist bloc were falling over each other to lower their trade barriers, liberalize their capital markets, and encourage their best and brightest to study in the West. Multinational firms were expanding their supply chains to bring workers from Mexico, China, Vietnam, India, and Russia into their fold. The internet had created entirely new ways for information to cross borders. Labor productivity was soaring and global poverty was falling.
U.S. politicians largely embraced this trend. Republicans and Democrats cooperated to negotiate trade agreements with both longtime friends and former foes. All this took place in a context of public optimism: In January 2000, 69 percent of Americans told Gallup they were satisfied with the country's direction.
