Trade With China Is Great For Low-Income Americans

Trade With China Is Great For Low-Income Americans by David R. Henderson, Foundation For Economic Education

Trade With China – Cheaper Goods Help People with Less to Spend

In a recent post, I challenged Mark Kleiman’s view that low-income people do not benefit at all from international trade. He wrote:

But the bottom line is that all of the gains, not merely from trade but from economic growth, have been concentrated in the hands of a relative few.

That struck me as highly unlikely, and I gave my reasoning about why.

Commenter Aaron McNay pointed out evidence that I understated the gains to low-income Americans from trade. The evidence is in Christian Broda and John Romalis, “The Welfare...