Protectionism Actually Hurts U.S. Jobs And Economy: An Investigation Of Proponents And Opponents

• Published in: The international business & economics research journal 2011-02, Vol.5 (9)
• Main Authors: Kim, Ki Hee, Leung, C.K.
• Format: Article
• Language: English
• ISSN: 1535-0754; 2157-9393
• DOI: 10.19030/iber.v5i9.3500

Outsourcing is an issue that is generating a lot of debate in the Pacific Northwest, often in response to stories about job cuts and fears that workers will get left out in the cold. However, much of what we read and hear about outsourcing is based on misinformation, no information, or just plain politics. Every major national study confirms that outsourcing creates more jobs than it destroys in the U.S. One of the most persistent complaints against globalization is that it destroys jobs. Many people believe that, the more shoes or cars or steel beams we import to the U.S., the fewer we produce ourselves and the fewer Americans with jobs in those industries. Anxiety about trade and jobs is especially acute about imports from poor countries, where workers typically earn a fraction of the wages earned by American workers. The most ardent proponents of free trade will grant that its benefits are not universally distributed, while it almost always outweighs the costs. Along with the many winners come smaller but still real numbers of losers: people whose jobs are indeed put in jeopardy and even eliminated by competition from imports. For those people, the benefits of lower prices, higher quality, and wider consumer choices can be swamped, at least temporarily, by the trauma of losing their jobs. The purpose of this research is to investigate the advantages and disadvantages of protectionism and its impacts on U.S. jobs and the economy.