Thread by @GabAboutTrade

Policymakers tend to forget that all American workers are also American consumers, spending a significant portion of their paychecks on essentials like clothing, food, shelter, and energy. A #NewWorker 🧵: cato.org/empowering-new… @CatoInstitute

Yet, many policies intentionally raise the prices of necessities, reducing workers’ real household incomes and living standards.

This hurts poorer Americans the most because they spend a greater share of their total compensation (including taxes and government transfers) on necessities.

Shelter, food, transport, utilities, and clothes accounted for approximately 68% of the poorest U.S. households’ annual expenditures, but only 52% of the richest households’ spending.

Some policies that inflate the prices of essential goods include: tariffs, fuel economy regulations, taxes, the Jones Act, the dairy and sugar programs, marketing orders, subsidies, antidumping and countervailing duties, energy codes, and immigration restrictions.

To truly champion a “pro-worker” agenda, Congress, the president, and state and local governments should look at how current policies reduce Americans’ autonomy over their expenditures.

wsj.com/articles/worke…

Of course, since I’m all about trade, my first recommendation is to unilaterally remove tariffs and duties on necessities including food, clothing, shoes, cars and car parts, homewares, school supplies, and construction materials, including Sections 232 and 301 tariffs.

Take a look at these two tables:

1) Tariffs are lower on luxury goods!

2) The International Trade Commission estimates how much U.S. trade restrictions increase the prices of the products to which they are applied.

My chapter of @ScottLincicome’s book was published today.🥳I focused on lowering the cost of essential goods to improve the real incomes of American workers. My part is just one piece of the puzzle, so be sure to check out the rest of #NewWorker too! cato.org/publications/e…