Principles of Macroeconomics / Unit 17 MAC 1623 short lesson, about 20 seconds
Trade and Wages
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The idea
Two things are true at once. Trade raises productivity, which raises labour demand and the average wage. And it shifts the distribution, lowering demand in import-competing industries and raising it in exporting ones.
In practice
Stating only one of the two is how this argument usually goes wrong.
Where people slip
The witness says trade does not affect real wages; the course follows the anchor.
Your place on the trail
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