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Case for free trade as strong as ever, says Bloomberg editorial
"THE idea that US import barriers will strengthen the economy is brainless populism," says an unsigned Bloomberg editorial.
"Many experts say, or seem to say, that it's all very complicated, that the benefits of free trade have often been overstated," the commentary said.
"Economists don't want to be thought simple-minded - or, worse, market-fundamentalist. But the result is that some aggressively dumb economics is arousing only the most feeble pushback," Bloomberg said.
"The case for free trade, correctly understood, is as powerful as ever. It deserves much stronger support.
"The basic case is robust, and the economic record of the world's richest economies - including that of the US - attests to it.
"Free trade makes economies more productive by forcing producers to innovate, specialise and compete.
"It's true that more trade involves winners and losers, and that gains for the overall economy aren't much use to the people who lose their jobs because of cheap imports.
"You could say the same of people who lose their jobs because of automation. Yet presidential candidates don't oppose technology because it creates losers as well as winners. Perhaps that's next.
"Forgive the market fundamentalism, but a policy that delivers small net gains in the short term and substantial net gains in the long term still seems like a good idea.
"The smart case for free trade is the best answer to the new protectionism. But you don't need to be all that smart to see that letting TPP fail, let alone declaring trade war, is no antidote to Americans' economic anxieties," the editorial concluded.
"Many experts say, or seem to say, that it's all very complicated, that the benefits of free trade have often been overstated," the commentary said.
"Economists don't want to be thought simple-minded - or, worse, market-fundamentalist. But the result is that some aggressively dumb economics is arousing only the most feeble pushback," Bloomberg said.
"The case for free trade, correctly understood, is as powerful as ever. It deserves much stronger support.
"The basic case is robust, and the economic record of the world's richest economies - including that of the US - attests to it.
"Free trade makes economies more productive by forcing producers to innovate, specialise and compete.
"It's true that more trade involves winners and losers, and that gains for the overall economy aren't much use to the people who lose their jobs because of cheap imports.
"You could say the same of people who lose their jobs because of automation. Yet presidential candidates don't oppose technology because it creates losers as well as winners. Perhaps that's next.
"Forgive the market fundamentalism, but a policy that delivers small net gains in the short term and substantial net gains in the long term still seems like a good idea.
"The smart case for free trade is the best answer to the new protectionism. But you don't need to be all that smart to see that letting TPP fail, let alone declaring trade war, is no antidote to Americans' economic anxieties," the editorial concluded.
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