…So what has made free trade – which still gets the support of most Americans – such a political pariah?
A major explanation is that there are losers as well as winners from its effects. The winners may be far more numerous, yet the impact on the losers, from lost jobs and lower wages, is more intense and personal….
….In other words, while the overall welfare effects of trade liberalization are generally positive, the impact on some subgroups, particularly the less well-educated, are negative and much larger.
And the United States is less generous than other rich countries in providing both reemployment assistance and income support to workers hurt by these changes.
The primary U.S. program aimed at mitigating this negative impact is known as trade adjustment assistance (TAA). That its intended recipients call it “burial insurance” sort of sums up its image problem…..