Tuesday, May 5, 2015

The Economic Policy Institute on the TPP

From this EPI article:

"Expanded trade, particularly with trading partners that are poorer and more labor-abundant than the United States, is likely to lower the wages of most American workers. While expanded trade is generally 'win-win' at the country level, expanded trade redistributes so much income within countries that it’s possible to make the majority of residents worse off—and this is indeed the likeliest scenario for the United States."

 "Some TPP supporters claim the agreement will be 'all gain, no pain' for American workers because U.S. tariffs are already low while trading partners’ tariffs are higher. These arguments are economically incoherent. In fact, studies that show the TPP will increase overall American national income also show that it will cause substantial reshuffling of domestic production away from labor-intensive import-competing sectors. This will clearly inflict damage on large groups (probably the majority) of American workers."

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