Dean Baker: Loss of Manufacturing Jobs Isn’t ‘Tectonic’ – It’s a Policy Choice

Wall Street executive Steve Rattner had a column (8/14/15) in the New York Times in which he derided Donald Trump’s economics by minimizing the impact of trade on the labor market. While much of Trump’s economics undoubtedly deserve derision, Rattner is wrong in minimizing the impact that trade has had on the plight of workers.

Rattner tells readers:

In Mr. Trump’s mind (although not in the minds of serious economists), [the trade deficit is] why we’ve lost 5 million manufacturing jobs since 2000.

The Chinese are certainly protectionists, but a shift in manufacturing jobs was inevitable. For centuries, as countries have developed, the locus of jobs has shifted based on comparative advantage.