Paul Krugman Quotes About Trade

• Our grandfathers lived in a world of largely self-sufficient, inward-looking national economies - but our great-great grandfathers lived, as we do, in a world of large-scale international trade and investment, a world destroyed by nationalism.

  →

  Paul Krugman

  "The Great Illusion" by Paul Krugman, www.nytimes.com. August 14, 2008.

  599

• It should be possible to emphasize to students that the level of employment is a macroeconomic issue, depending in the short run on aggregate demand and depending in the long run on the natural rate of unemployment, with microeconomic policies like tariffs having little net effect. Trade policy should be debated in terms of its impact on efficiency, not in terms of phoney numbers about jobs created or lost.

  →

  Paul Krugman

  2272

• Governments do not necessarily act in the national interest, especially when making detailed microeconomic interventions. Instead, they are influenced by interest group pressures. The kinds of interventions that new trade theory suggests can raise national income will typically raise the welfare of small, fortunate groups by large amounts, while imposing costs on larger, more diffuse groups.

  →

  Paul Krugman

  3527

• Raising the minimum wage and lowering the barriers to union organization would carry a trade-off - higher unemployment. A better idea is to have the government subsidize low-wage employment. The earned-income tax credit for low-income workers - which has been the object of proposed cuts by both President Clinton and congressional Republicans - has been a positive step in this direction.

  →

  Paul Krugman

  4045

You May Also Like:

Paul Romer

Thomas Piketty

Paul Samuelson

Jonathan Chait

Tyler Cowen

David Brooks

Robert Reich

Ezra Klein