PSC 1001 Chapter Notes - Chapter 3: Earned Income Tax Credit, Blue-Collar Worker, Scapegoating
Document Summary
Candidates are flip-flopping on their opinions on free trade: nafta and tpp. Anxiety about trade: the economic ladder that allowed previous generations of lower- skilled americans to reach the middle class is broken: solution: lies not in turning away from trade promotion but in strengthening worker protections. The public thinks there are clear winners and losers when it comes to trade: trump. The united states sells to other countries the goods and services that it produces relatively efficiently: buys goods and services that other countries produce relatively efficiently, both sides benefit. People say that trade isn"t working: trade deficit with china. The us has been the recipient of capital inflows from abroad: reducing current account deficit would require foreigners to purchase fewer us assets. This would require increasing domestic savings or reducing consumption. The way to accomplish this would be to institute something like a consumption tax.
