The problem is neoliberal globalization.
The chief difference between classical economic liberalism, aka laissez-faire, and neoliberalism is that neoliberals realized that government is not a cause of friction to be removed as classical economic liberals assumed, but rather a key player that must be captured, controlled, and directed toward promoting elite interests. This involved how and to whom the surplus over production costs would be distributed.
This is a conflict between first Chief Justice of the US Supreme Court John Jay's "Those who own the country should rule the country" and Abraham Lincoln's "government of the people, for the people, and by the people."
The world is becoming more connected through transportation and communications technology and that is a good thing. Fair trade is also a good thing that can benefit everyone.
Net importers benefit in real terms of trade at full employment. Governments that are sovereign in their currency have the policy space to ensure full employment. Net exporters benefit in financial terms of trade at full employment but the benefit depends on distribution.
Stumbling and Mumbling
Is globalization to blame?
Chris Dillow | Investors Chronicle
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