Should-Read: Paul Krugman: Globalization: What Did We Miss?

Should-Read: Paul Krugman: Globalization: What Did We Miss?: “Anyone who worked on the political economy of trade policy knew that fights over tariffs look very much as if they come out of a specific-factors world…

…labor and capital within a given industry are generally on the same side in trade policy disputes, not on opposite sides as they would be if they were thinking about the broad factoral distribution of income. It should have been obvious that the general politics of globalization would reflect that same reality. That is, never mind the question of how trade affects the blue-collar/white-collar wage gap, or the aggregate Gini coefficient; the politics of globalization were likely to be much more influenced by the experience of individual sectors that gained or lost from shifting trade flows…