“Contrary to the claims that “unfair” foreign competition hurts the jobs at home, the unemployment rate actually fares better in times of higher trade deficits. Bryan Riley and former Ambassador Terry Miller provide further clarification:
When the trade deficit increases, the unemployment rate decreases, and vice versa. For example, in 2009, the U.S. trade deficit shrank by 46 percent, and the unemployment rate increased by 60 percent.
Many critics of trade deals such as NAFTA and the WTO agreement argue that free trade benefits big multinational corporations and “the rich” at the expense of everyone else. In fact, poverty rates are much lower in countries with low trade barriers than in those where trade is restricted.”
(H/T: Heritage)
