I've explored a number of different articles and some say it's good because american consumers/business aren't impacted by the tarrifs, however some other sources say we barely export anything to the counteries part of the TPP and hence we're giving them too much benefit for nothing.

I have found plenty of sources saying it's 'good' or 'bad' and they cite numbers such as '50000' added jobs, 5% increase in gdp, etc but there is no actual discussion of how they came up with these estimates.


1 Answer 1

  1. These estimates are almost certainly bs.
  2. The TPP would benefit consumers because easier imports may make consumer goods cheaper directly and through more competition on product markets.
  3. The TPP would hurt some workers, because increased import competition would force some American companies out of business.
  4. The TPP would benefit other workers, because their companies would export to Asia and grow.

I think economists consensus is that on average and in the medium run, free trade will benefit people in both countries. However, it has also become pretty clear that free trade hurts some people quite badly in the short run because they'll lose their jobs and possibly won't find new ones. It has also become pretty clear, that even though in theory you could put policies in place that help people and places that are hurt by trade at the expense of those who benefit from it, this is almost never done in practice. If you are for more or less free trade depends largely on what weights you apply to this trade-off.


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