Margaret E. Peters
I WOULD LIKE TO FOCUS on Dani Rodrik’s scheme to combat the dark side of “social dumping.” His idea is, according to Naidu, Rodrik, and Zucman, “indicative of the commitments of many of the members of EfIP: a willingness to subordinate textbook economic efficiency to other values, such as democratic rule and egalitarian relationships among citizens.” Rodrik contends that, to ensure U.S. workers compete on a level playing field without being undercut by practices that would be illegal here, we could restrict trade with countries that violate minimum labor or environmental standards. He proposes public hearings to debate and determine what constitutes unfair trade. These protections, Rodrik argues, would allow us to maintain high standards while at the same time making U.S. businesses more competitive, thus safeguarding jobs. This scheme is unlikely to succeed on some of its central aims. It probably would not protect U.S. jobs, and it would likely hurt the world’s poorest countries.
Regarding U.S. jobs, since the end of World War II, governments have made it easier and easier to trade goods and to locate production in any country. Technological development has also made it easier for businesses to replace workers with machines. It is this combination of free trade and automation that has led to steep U.S. job losses in manufacturing.