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.
- Most job losses are not due to international trade.
- Trade is more about efficiency – and hence wages – than about the number of jobs.
- Bilateral trade imbalances are inevitable and mostly uninteresting.
- Running an overall trade deficit does not make us “losers.”
- 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.