Legacies of Globalization and Risks of Automation: Economic Security and the Role of the State in th

by Leonardo Baccini, Katja Kleinberg, Stephen Weymouth

Technological shocks reshape employment prospects and, in turn, views on economic security and the government’s role in the economy. We develop a theory linking these attitudes to two sequential disruptions: internet-enabled globalization and AI-driven automation. In capital-abundant economies, globalization displaced workers and weakened confidence in markets; in labor-abundant economies, it expanded manufacturing and strengthened economic security. Automation extends these effects through a compounding mechanism, in which earlier globalization shocks shape interpretations of the automation threat and the appropriate government response. Where globalization eroded labor markets, AI deepens insecurity and heightens demand for state intervention; where it strengthened them, concerns about automation are moderated and demand for intervention is comparatively weaker. Using cross-national data and survey experiments in the United States and Mexico, we show that perceived security rises with manufacturing advantage and that information about AI-related job loss reduces economic confidence and increases support for government intervention, especially in the United States. These findings show how the legacies of globalization shape political responses to automation and redefine views of the state’s role in the economy.

57 pages, Unknown Binding

Published October 1, 2025