Five Big Truths About Trade

In a recent opinion piece in the Wall Street Journal, Princeton economist and former vice-chair of the Federal Reserve, Alan Blinder attempts to add constructive insight to the political discussion regarding international trade.  Below you will find the Five Big Truth he cited.  I encourage you to read the details.

  1. Most job losses are not due to international trade.
  2. Trade is more about efficiency – and hence wages – than about the number of jobs.
  3. Bilateral trade imbalances are inevitable and mostly uninteresting.
  4. Running an overall trade deficit does not make us “losers.”
  5. Trade agreements barely affect a nation’s trade balance.

If you can’t access the Wall Street Journal, use the entry on Greg Mankiw’s blog.