Analysis of The Truth about Trade and The Strategic Logic of Trade

Free Trade / Texts Review and Analysis
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Free Trade / Texts Review and Analysis
Economists unanimously believe that free trade of goods among countries is beneficial to both importers and exporters. Nevertheless, this widely held proposition has historically faced resistance among policymakers and the public. For instance, in developed economies with liberal trade policies, this skepticism has gained increasing momentum in the recent past, especially during the 2016 elections in the United States (Rose, 2016). Douglas Irwin in “The Truth about Trade” and Michael Froman in “The Strategic Logic of Trade” set clear that such disapprovals about the benefits of trade, especially in the United States are unfounded.
Douglas Irwin’s argument
In summary, Irwin argues that nations would rather aim at adopting or enhancing their commitments to free trade and desist from blaming it for their existing or past economic challenges. The author cites that the United States has in the past enormously benefited from free trade. Irwin notes that U.S. politicians are hellbent on the rhetoric of protectionism while blaming other countries for the country’s economic turmoil. While acknowledging that the United States benefited from the extreme trade barriers in the late 19th century that saw unprecedented economic growth through rapid industrialization, Irwin strongly criticizes technology for the current state of increased levels of unemployment by turning blue-collar jobs obsolete (Irwin, 2016). According to Irwin (2016), technology is the culprit that has diminished social mobility and domestic opportunities in the United States which boasts a solid technological base and a highly skilled workforce.
Irwin (2016) wrote the article during the 2016 elections cycle in the United States when presidential candidates logged an attack on the U.S. trade policy and free trade. Bernie Sanders, the then Democratic candidate condemned free trade terming it as “disastrous”, hurting the middle class, and costing the United States countless jobs. The Republican candidate, Donald Trump also complained of China, Mexico, and Japan “killing” t...