Josh Bivens at the Economic Policy Institute writes—Brad DeLong is far too lenient on trade policy’s role in generating economic distress for American workers:
Brad DeLong posted a widely-read piece on Vox a couple of weeks ago effectively exonerating globalization and trade policy from accusations that it has contributed to economic distress for low- and moderate-wage American workers. He doubled-down on specific claims this week in a piece at Project Syndicate. Below I’ll assess some of his claims in a bit of detail, but here’s a “too-long; didn’t read” checklist of how I grade the accuracy of some of his main claims:
- Putting pen-to-paper on trade agreements contributed nothing to aggregate job loss in American manufacturing. This is almost certainly true.
-
The aggregate job loss we have seen in manufacturing is due to automation plus declining domestic demand for manufactured goods, period. This is mostly false. Trade deficits, especially with China in the last 15-20 years, have contributed significantly to overall manufacturing job-loss..
- The source of these rising trade deficits is mostly an overvalued U.S. dollar, which has nothing to do with trade policy. It’s true that an overvalued dollar is what’s behind rising trade deficits, but saying that has nothing to do with trade policy is semantics. Call it macroeconomic policy if you want, but the way an overvalued dollar hurts Americans is through its impact on trade flows.
- The trade agreements we have signed are mostly good policy and have had only very modest regressive downsides for American workers. This is false.
- Globalization writ large has been tough on some American workers and policymakers have failed to compensate losers. This is true, but I think DeLong underestimates the number of losers and the size of their losses. [...]
QUOTATION OF THE QUOTE
“No tin-hat brigade of goose-stepping vigilantes or bibble-babbling mob of blackguarding and corporation paid scoundrels will prevent the onward march of labor, or divert its purpose to play its natural and rational part in the development of the economic, political and social life of our nation.”
—John L. Lewis, Labor and the Nation speech, September 3, 1937
TWEET OF THE DAY
BLAST FROM THE PAST
At Daily Kos on this date in 2012—Orrin Hatch claims abortion is '95 percent' of what Planned Parenthood does:
Sen. Orrin Hatch is a hardcore old-school conservative. For much of recent history he was considered a conservative stalwart in the senate. That's not good enough for modern conservatism, however, which is predicated on being so absolutely batshit regressive that Ronald Reagan looks like a communist by comparison, and so Hatch has had his work cut out for him lately trying to placate a base that considers him a traitor to the cause.
Which might explain statements like this, from Hatch:
Look, we all know that Planned Parenthood does 400,000 abortions a year or more, and yet that's supported by the federal government. They claim that money isn't, uh, they don't use federal funds, well, about 95 percent of all they do, from what I understand, is abortion.Oh! In the senate playbook we call that "Pulling a Kyl." Last year, on the floor of the Senate, Sen. Jon Kyl famously declared abortion was "well over 90 percent of what Planned Parenthood does." It was an assertion so obviously and profoundly false that his office could do nothing but issue a now-famous press statement that his claim was "not intended to be a factual statement." Then, after becoming a national laughingstock (well, more so, anyway) Kyl "revised his remarks" in the congressional record to erase the claim, which you can do if you are a senator, and which I think senators believe alters the fabric of spacetime in such a way as to make the thing not have ever happened.
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