Donald Trump and Bernie Sanders agree on something…
It is becoming increasingly clear how devastating U.S. global trade has been to a large portion of the American public. In the run-up to the 2016 election, Sanders and Trump have helped expose the major problems that have arisen from America’s current course.
There was a great article in Reuters yesterday discussing America’s current trade policies, and how they are classic examples of rules rigged to benefit the few. The article discuses how economists increasingly accept that current trade policies contribute directly to our country’s increasingly extreme inequality, as workers lose ground and CEOs get richer.
There certainly are some benefits of free trade, but the costs seem to outweigh those benefits.
The benefits of America’s current “Free Trade” policies:
- Americans have benefited from the lower prices and increasing variety of imported goods.
- The benefits of trade accords have flowed largely to corporate balance sheets, to investors and to high-level executives.
- Workers, meanwhile, have suffered a loss of wages, security and power.
What are the costs of America’s “Free Trade” policies:
- They have resulted in unprecedented trade deficits, now at about $500 billion a year, or 3 percent of gross domestic product.
- The United States lost an estimated 2.4 million jobs to China trade alone from 1990 to 2010
- Economists estimate trade with low-wage countries has lowered blue-collard workers’ wages about $1,800 a year.
- The American worker has suffered a loss of wages, security and power.
Read the full Article Here: Trump and Bernie are both right: ‘Free trade’ is killing us