Monday, September 19, 2011
Trade and jobs
Interesting bipartisan WSJ op-ed last week focusing on how trade boosting measures would lead to more jobs here in the US. The authors note that growth in overseas economies such as Brazil, China, and India is much higher than domestic growth, so any steps that would allow American companies to tap into that growth would pay economic dividends domestically. The authors make three key points: (1) the US should more aggressively recruit firms from outside the US to invest here and open facilities, (2) the US should focus its trade deals on countries that are in the best position to generate job creation (of the deals that are awaiting Congressional approval, Korea makes sense, Colombia and Panama not so much, what about a deal with Brazil?), and (3) the US needs to rethink how it prepares workers for global competition (instead of paying unemployment benefits to workers who have lost their jobs to overseas competition, why not try to retrain them for newly emerging opportunities?).