Staring Into the Mouth of the Trade Deficit

Five years ago, the Northwestern city of Seattle made news when anti-globalization protests shut down a meeting of the World Trade Organization. Now, the city is back in the center of a national storm over trade imbalances and job loss. Seattle, the most trade-dependent city in the United States, earns more per capita from trade than any other area in the country. Yet with the US trade deficit at a record $489 billion, Seattle's citizens are coping with increased unemployment and economic malaise. Cargo ships enter Seattle’s ports overloaded with Asian imports and leave half-empty. The area’s giant manufacturers like Boeing and Microsoft are shifting low and high-skill jobs overseas. Not all observers agree the trade deficit is to blame for unemployment - some economists argue that increased productivity and a generally weak economy are the more salient factors. Others say that the reality of outsourcing requires adjustment instead of condemnation; that increased pensions and training could help laid-off workers find employment. For now, the half-empty ships leaving Seattle’s ports are a reminder that for regions tied to trade, until the global economy grows, jobs won't grow. - YaleGlobal