Yesterday, @AmbassadorTai argued that the Biden administration’s trade protectionism advances the goal of racial equity.
I don’t want to be disrespectful or combative but that’s dead-wrong.
Trade liberalization, not protectionism, advances racial equity. Thread 1/
Tai’s main piece of evidence is data showing that non-white workers have seen esp. fast wage growth during the recovery. That’s true (and good!) but there’s no evidence that was in any way attributable to Biden admin protectionism. 2/
In contrast to the paucity of evidence that protectionism helps Black and Hispanic citizens, there is clear evidence that it in fact hurts them. First, tariffs are a highly regressive tax. In part this is because they’re esp. high in food and clothing. 3/
Even within product categories, tariffs are higher for mass-market goods than luxury goods. As @EBGresser's report also points out, those tariffs aren’t even effective at promoting greater employment. 4/ progressivepolicy.org/publication/tr…
Meanwhile, the U.S. long-standing tariffs on Canadian softwood lumber make it more expensive to build new housing. That is extra bad for Black Americans who need new housing now to build wealth seeing as they were locked out of that by redlining, racism, etc. 5/
So let’s just stop and take note of the fact that protectionism makes it harder for Black and Hispanic citizens to put food on the table, buy their kids back-to-school clothes, and build wealth via housing. Lots of equity going on there. 6/
African-American make up a disproportionate share of auto sector workers, and contra to conventional wisdom, that sector has been helped a lot by globalization and greater access to export markets. 7/ @JGodiasMurphy uschamber.com/assets/documen…
Nor is protectionism generally directed toward helping Black employment. Take the steel industry for example. It receives a significant amount of protectionism. It’s also 88% white. That’s not a coincidence. 8/ bls.gov/cps/cpsaat18.h…
.@A_Guisinger has done some very cool research showing that white Americans support protectionism at higher levels went they believe the beneficiaries of it are white and support it less when they think the beneficiaries are Black. 9/ washingtonpost.com/news/monkey-ca…
There is not a one-off result. Other research shows that white voters’ racial anxiety is connected to anti-globalization attitudes and to the Trump administration’s protectionism. 10/ piie.com/system/files/d…
And speaking of Trump. His trade war w/ China (that the Biden admin has continued) is estimate to have cost the average American family over $1200 just in 2019. Obviously, that’s a bigger hit to less economically privileged families. 11/ thirdway.org/memo/trumps-co…
Moreover, Black and Hispanic voters consistently express strong support for free trade. 71% of non-white voters see trade as more an opportunity than a threat (that’s 15% higher than whites), and they support NAFTA at higher rates than whites as well. 12/
To put it bluntly, Black and Hispanics are pretty clearly saying they want more trade but the forces of protectionism are marginalizing their voices. 13/
If we look internationally, some of the people most hurt by trade barriers are sub-Saharan African farmers. Trade liberalization would help them a lot. Getting the EU, US, and Japan to lower their ag. subsidies is what a truly equitable trade initiative would look like. 14/
And this is to say nothing of the fact that free trade has lifted billions of people globally (most of them non-white) out of poverty. 15/
And all of this is before we’ve even gotten to the fact that trade is hugely beneficial to people who work in services and women disproportionately work in services, so this is a gender equity issue too. 16/
So yeah, if we're really going to have an equity-oriented trade policy, we should have a free trade oriented trade policy. End/
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Yesterday, the U.S. and Taiwan announced that they will soon start negotiating a trade deal. In principle, this is a great idea, but it needs to be an ambitious deal and the announcement suggests that it may not be. 🇺🇸 🇹🇼 Thread 1/
Here’s the announcement. The first section is trade facilitation (transparency, customs, etc.) The second is on regulation and third is anti-corruption. These are the easy ones though it’s not super clear exactly how much they achieve in this case. 2/
Then we get to SMEs. This is a really strange place to start. The vast majority of exporting and a lot of importing gets done by large firms. Trade is mostly a big business thing. Think semiconductor firms like the Taiwanese company TSMC. 3/
An important aspect of the global economy that people aren’t paying enough attention to is the “servitization of manufacturing,” i.e., the increasing degree to which manufactured goods require the complementary provision of services. Thread. 1/
These can include the services that have traditionally been associated with manufacturing, such as finance, transport, and R&D, but can also be relatively new services like cloud computing. 2/
The manufacturing sector is also increasingly reliant on service inputs, services within the manufacturing process (design, marketing), and services sold bundled with goods. 3/
The Biden administration today announced a flurry of moves with regards to solar panels. It can be a little confusing, so I wanted to give an explanation here of what they’re doing and why. Thread 1/
The Biden admin would like to expand solar energy to fight climate change but also wants the production of panels to be in the United States and so has used trade protectionism to try to do that. 2/
There is some tension between installers and environmentalists (who want the panels to be cheap) and producers (who want to be protected from foreign competition). The Biden admin sided with the latter. 3/
This field was supposed to have 155 houses in it. There aren’t any there and there never will be. The story of why tells you everything you need to know about why Vermont has a housing crisis and is the most unaffordable rural place in America. Thread. 1/ @GovPhilScott
The field is in South Burlington, one of the towns the state government has identified as having the most growth potential, a big help in state with the third oldest population in the country. Concerns about population stagnation are common here. 2/
A developer purchased this field with the intent of building 155 houses on it. That’s when the NIMBYs came out of the woodwork, and leveraged Vermont’s unusually anti-development land use regulations to the max. 3/
The combination of educational polarization and a low fungibility between economic, cultural, and political power is making both parties miserable. Thread 1/
In a liberal democracy, there is not much fungibility between economic power, political power, and cultural power. In other words, it is generally difficult to use political power to reshape the culture and it’s hard to use cultural power to reshape the economy, etc. 2/
Meanwhile, educational polarization means that progressives have a disproportionate amount of cultural power, and they make up the bulk of the leadership of major firms and make more money, so they have disproportionate economic power too. 3/
Inflation is not entirely Biden’s fault. Many other countries are also struggling with inflation.
But there are a number of Biden administration policies that are making it worse.
A definitely non-exhaustive list. Thread 1/
They doubled tariffs on Canadian lumber. That makes building new homes more expensive. And they’ve put no energy into reforming the AD/CVD process that led to these tariffs. 2/
They’ve put in place, or kept in place, tariffs on a range of other building materials as well. As @scottlincicome points out, many of these could be gotten rid of with a stroke of a pen. 3/