As part of a series of thoughtful papers for the next administration focused on economic policy and equitable growth, MIT labor economist David Autor argues that the damage caused by “China shock” is mostly behind us, and the focus should now be on readjustment for displaced workers.
While Autor and his colleagues have performed remarkable research on the impact of surging Chinese imports on American factory workers and their communities, I believe his advice to the next administration on trade underestimates the ongoing impact of trade with China, and offers the ineffective solution of treating the symptoms (layoffs) rather than the underlying problem (a truly level playing field).
