Wednesday, July 09, 2008
From Christian Broda, the second graph and this:
We need to remind politicians and the public that the gains from trade are broadly shared. Every time the discussion over trade is diverted towards the problems facing specific producers, be they farmers in France or textile workers in the U.S., we miss the central point. Trading allows everyone, and especially the poor, to buy things that they could not otherwise afford. Without better public understanding of these facts, governments will not only keep supporting policies aimed against China and Wal-Mart but may receive the uninformed support of many consumers who are benefitting from trade.The higher your expenditures are composed of tradeable goods, the greater the benefits of globalization. The highest shares of food and fuel in one's budget are for the poor (we would say they are income-inelastic.)
h/t: Mark Perry for the first graph, McQ for the second.