The McKinsey Quarterly: Don't blame trade for US job losses
An excerpt from the article:
The enormous US trade deficit has caused many observers to conclude that international trade, particularly a massive flood of imported goods from China and of services from India, is to blame for the loss of US jobs since 2000. In fact, research shows that only 11 percent of the job losses in manufacturing—about 314,000 jobs—can be attributed to trade, and even in this instance the real culprit was falling exports, not rising imports. Offshoring in the services sector destroyed even fewer jobs. The real causes of job losses were weak domestic demand, rapid productivity growth, and the dollar's strength.
Read More: http://www.mckinseyquarterly.com/article_page.aspx?ar=1559&L2=7&L3=10&srid=17&gp=0
The enormous US trade deficit has caused many observers to conclude that international trade, particularly a massive flood of imported goods from China and of services from India, is to blame for the loss of US jobs since 2000. In fact, research shows that only 11 percent of the job losses in manufacturing—about 314,000 jobs—can be attributed to trade, and even in this instance the real culprit was falling exports, not rising imports. Offshoring in the services sector destroyed even fewer jobs. The real causes of job losses were weak domestic demand, rapid productivity growth, and the dollar's strength.
Read More: http://www.mckinseyquarterly.com/article_page.aspx?ar=1559&L2=7&L3=10&srid=17&gp=0
Comments