Reforming trade rules could be big win for economy

economyincrisis. ^ | 3/28/16 | Alan Tonelson

[central_va]

Current U.S. trade policies have become deeply unpopular with a critical mass of Americans — that much is clear from recent primary results and exit polls, and the longer running presidential campaign success of Republican Donald Trump and Democrat Bernie Sanders. Voters mainly, and understandably, fear that their job and wage prospects have been kneecapped by free trade agreements and related policy decisions like ignoring predatory practices by foreign governments.

Yet Washington’s decades-long, bipartisan trade strategy has fueled an more fundamental problem — dramatically slowing an already dismal U.S. economic recovery.

National economies can’t truly be healthy without enough good jobs to enable their people to pay for most expenses by earning, rather than by borrowing. But achieving this goal in turn requires strong inflation-adjusted growth (the measure followed most closely by economists and policy makers). The current recovery’s annual average 2.22% real rate of expansion since it began in 2009 is an all-time low for American expansions. Although many culprits can be blamed, the nation’s recent trade performance deserves special attention.

According to the standard method of calculating the economy’s size and how it changes, an improving trade balance — whether a bigger surplus or smaller deficit — contributes to growth. A worsening trade balance — whether a smaller trade surplus or a bigger deficit — subtracts from growth.

The U.S. government’s official figures show that real (after-inflation) output so far has expanded by a little less than $2.1 trillion during the current recovery.

[central_va]

Yet Washington’s decades-long, bipartisan trade strategy has fueled an more fundamental problem — dramatically slowing an already dismal U.S. economic recovery.

[Drango]

nonsense.

Some goofy politicians are against it, but overall americans like trade and see it as an opportunity for growth.