POLS 051 Chapter Notes - Chapter 11/5 Readings: Trade Adjustment Assistance, Earned Income Tax Credit, Reserve Currency
12 Jan 2019
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Document Summary
Blaming other countries for our economic problems is an age-old us tradition: trade still benefits the us enormously today; striking out at trading partners or ending agreements would be self-destructive. The current economic issues facing people today would not be helped by ending trade: the solution lies in strengthening worker protections. The economic ladder that allowed low-class americans to rise in the past is broken, caused by changing policies, not trade. Trade is a two-way exchange of goods or services that is mutually beneficial because each trading partner produces and sells a good that they produce relatively efficiently compared to their partner. Us people who tend to be low-income, blue collar workers are the most vulnerable to economic change and they tend to favor anti-free trade policies. Automation has taken jobs and kept wages low, not trade, as it increases productivity and lowers costs.
