U.S. trade deficits have hit the manufacturing economy hard, as our nation exports its good jobs abroad. Right? That, at least, is the line of argument that anti-trade interests frequently push.
How to cope with all the thunder about U.S. trade policies? Since Japan and Germany have run chronic trade surpluses for many years, Reynolds notes, statistics showing greater loss of manufacturing jobs in those countries than in the U.S. “contradict all trade-related explanations for the (unproven) belief the United States has long been suffering wage stagnation or increasing wage inequality.”
And on the U.S. wealth spectrum?
On page 203, for example, Reynolds lists the most popular superstitions of the derogating class, including the assertions that 80 percent to 90 percent of U.S. households have experienced no increase in real income for 25 years, and that only the top 1 percent to 10 percent have received any significant benefits from the growth of productivity.
“Not one of those statements is even remotely close to being true,” Reynolds writes. “It is difficult to imagine how so many of the nation’s leading economic journalists and economists claim to believe not just one or two of these incredible ideas, but the entire package.”
A timely column, as Congress returns from the August recess with trade agreements with Peru, Panama, Colombia and South Korea on the agenda (we hope).
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