The Payoff from Globalization

Between 1946 and the present day, the United States has decreased its average tariff rate from 40 percent to 4 percent. Likewise, many economies worldwide have made moves to open their markets. Two analysts from the Institute for International Economics attempt to answer an obvious question: Has this trend benefited US citizens? Their answer: Absolutely. Unfortunately, the advantages are not as clear-cut as extra money in the bank. Economic gains often appear in the form of lower prices or increased variety in consumer goods. And these widespread public gains come at a price: trade-related job loss. "Given the enormous dividends from international trade," conclude the authors, "more can and should be done for those forced to bear the burden of economic adjustment." – YaleGlobal