Most Popular Choices
Share on Facebook 46 Printer Friendly Page More Sharing
Exclusive to OpEd News:
OpEdNews Op Eds    H2'ed 3/24/16

Workers Knew First

By       (Page 1 of 3 pages)   No comments
Follow Me on Twitter     Message Joel Joseph

Workers Knew First: Media, Politicians and Economists Finally Admit they were Wrong

Joel D. Joseph, Chairman, Made in the USA Foundation

Twenty-five years ago, there was a widespread consensus that more trade was good for everyone. In 1993, the North American Free Trade Agreement, NAFTA, passed with Democratic and Republican support. In 1972, Richard Nixon opened the door to China trade with Democratic support. The overwhelming majority of the media supported more free trade and claimed that it was good for the American economy. Similiarly, most economists thought that more trade was a no-brainer, that it created jobs in the U.S. and abroad. But they were all wrong.

Earlier this month the New York Times finally admitted that it made a grave mistake: "What seems most striking is that the angry working class -- dismissed so often as myopic, unable to understand the economic trade-offs presented by trade -- appears to have understood what the experts are only belatedly finding to be true: The benefits from trade to the American economy may not always justify its costs."

The New York Times noted a recent study by three economists -- David Autor at the Massachusetts Institute of Technology, David Dorn at the University of Zurich and Gordon Hanson at the University of California, San Diego that found that a prime economic assumption relied on by international economists was false. The false presumption was that economies quickly recover from trade shocks. For example, when Chinese furniture replaces American furniture, the U.S. economy is supposed to adjust. In theory, a developed industrial country like the United States was supposed to adjust to import competition by moving workers into more advanced industries that could successfully compete in global markets. But this theory, like so many other economics theories, proved to be wrong. Dead wrong.

The economists examined the effects of increased U.S.-China trade. The presumed adjustment, they concluded, never happened. Wages remain low and unemployment high in the most affected local job markets. Nationally, there was no sign of offsetting job gains elsewhere in the economy. What's more, they found that sagging wages in local labor markets exposed to Chinese competition reduced the average earnings dramatically.

Bernie Sanders and Donald Trump

Next Page  1  |  2  |  3

(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).

Must Read 2   Valuable 1  
Rate It | View Ratings

Joel Joseph Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

CEO of California Association for Recycling All Trash, www.Calrecycles.com and CEO of Genuine-American Merchandise & Equipment, www.genuine-american.com, manufacturers of tennis equipment in the USA (Tennis Wellbow, Good Vibe vibration (more...)
 

Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines

 
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEd News Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

The Trumps and Jared Kushner Cheated Their Way into Elite Colleges

Outsourcing Obamacare

Red Nose Day Gives Black Eye to Walgreens and NBC

Shame on Ralph Lauren and the US Open

Great American Products to Buy Labor Day Weekend

U.S Trade Deficit Causes Income Inequality

To View Comments or Join the Conversation:

Tell A Friend