The US 'Rustbelt' explained

2 months ago 8

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"[M]any people reflexively blame trade for the decline of [what's become knows as the American] 'Rustbelt.' ...
    "But ... [d]oes trade explain the decline of steel employment from roughly 190,000 to 84,000?

If trade [alone] explained the loss of employment in steel mills, then you would expect to have seen a precipitous decline in domestic steel production. In fact, there’s been very little change in steel output during a period where employment has plunged sharply:

"[I]mports have had some impact on employment in manufacturing. But the primary cause of job loss has been automation [exacerbated by] unionisation forcing jobs to other parts of the country, rather than trade."

~ composite quote by Scott Sumner and Jon Murphy from Scott's post 'Trade as a scapegoat'

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