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EconoMeter panel: Are tightened trade policies bad for the economy?


Friday, May 13, 2016

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Kelly Cunningham, National University System

Answer: YES

It is unreasonable to consider only losses without considering gains incurred by the agreements. Freer trade benefits trade and investments in both countries and allows comparative advantages to flourish. A country using their comparative advantage sees income grow, and can afford better education and infrastructure. This in turn provides more comparative advantages in additional economic activity. Incomes further rise and economic stability improves more than would have occurred without lifting barriers and restrictions on trade