Why distinguishing between domestic and foreign policy is “ridiculous”

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Ezra Klein finds the distinction between domestic and foreign policy “ridiculous”:

In a world where a bank can simply uproot its headquarters and head to London or Hong Kong or Singapore, regulators need to worry about driving banks in unregulated havens where they’ll be even more dangerous, and so they need to work with their counterparts in other countries to achieve some minimum standards of regulations. Dealing with the international spillovers of the financial system would be an excellent topic for the foreign-policy debate to cover. But financial regulation is “domestic policy.”

You can go down the list. Gas prices are set on a global market. Flu pandemics with the possibility to kill thousands or even millions of Americans begin on farms in Asia. Food safety is no longer a domestic question when you’re importing your grapes from Chile. The climate heats whether your greenhouse gases are coming from Minnesota or Malaysia. Interest rates are driven by foreign demand for U.S. debt. “Talking about economic policy and stopping at the borders doesn’t make a lot of sense,” says Simon Johnson, an MIT economist who previously served as chief economist at the World Bank.

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Peter Schorsch is the President of Extensive Enterprises and is the publisher of some of Florida’s most influential new media websites, including SaintPetersBlog.com, FloridaPolitics.com, ContextFlorida.com, and Sunburn, the morning read of what’s hot in Florida politics. SaintPetersBlog has for three years running been ranked by the Washington Post as the best state-based blog in Florida. In addition to his publishing efforts, Peter is a political consultant to several of the state’s largest governmental affairs and public relations firms. Peter lives in St. Petersburg with his wife, Michelle, and their daughter, Ella.