Home > International Trade, Microeconomics > Winners and “Losers” in Trade

Winners and “Losers” in Trade

tradeAdam Ozimek makes the case that the losers in trade are only losers in a very narrow sense:

The most common genres of free trade criticism today revolve not around it’s average effect, but the claim that free trade creates winners and losers. While these trade critics think it is proponents who are oversimplifying and missing the point, I think it’s critics who are doing this. The important truth is, everyone wins from free trade on net.

The mistake that people make is to examine only marginal changes in free trade, which ignores all the free trade that has happened up to that point, and happens elsewhere in the economy.

Worth reading.

(For another perspective, see When Doesn’t Trade Make Everyone Better Off?)

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