Trade, Jobs and Politics

Great Decisions 2017 | Topic 2

The U.S. political mood toward trade has gone sour. One need look no further than the 2016 presidential contest for the popular narrative.

The U.S. political mood toward trade has gone sour. One need look no further than the 2016 presidential contest for the popular narrative: trade means that China wins, at America’s expense. But do the numbers support that conclusion? The metrics used to gauge economic strength—Gross Domestic Product and balance of trade—have not kept up with the realities of modern manufacturing. Obtaining an accurate picture of U.S. economic stature requires a critique of those numbers. Only then can the U.S. develop appropriate policy solutions for the challenges at hand.

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