The Wall Street Journal - Is free trade necessary for economic development?

reduced tariffs could mean a $530 boost to the U.S. economy

From the WSJ:

In the Naftz study, economists Dean DeRosa and Gary Hufbauer estimate that, by granting trade zones the same tariff exemptions our trading partners give their manufacturers, the U.S. could see a 20% increase in shipments here from the zones. The gains from "reallocating U.S. capital and labor to more productive uses" would give an estimated $530 million boost for the U.S. economy, much more than the $186 million loss in customs revenues. "Premium wage gains" could total $400 million, the economists say, as manufacturing shifts the "U.S. labor force towards more productive jobs" -- especially in transport equipment, mineral products, machinery and chemicals.

The whole article is an endorsement of a proposal to reduce tariffs.

Posted on 7/13/2008 3:21:52 PM by jas225Approved 7/21/2008 3:40 PM