WSJ: It's true. China has hurt the working class.

What animates the 2016 campaign?  I mean, what is important to voters?

Trade with China has hurt - and continues to hurt - the American working class.   PB
------

From the Wall Street Journal online:

Why China Trade Hit U.S. Workers Unexpectedly Hard 

 

A growing body of academic research shows the U.S. workforce was hit harder than expected by trade with China and was potentially unprepared for the shock.

As import competition surged and displaced manufacturing workers, the U.S. labor force itself was becoming less adaptable, and political blowback was brewing.

Here is a summary of some of the most important new research in these areas:


Less Flexible Labor Markets

U.S. workers and firms have long been known among scholars and policy makers for being flexible and able to adapt to shocks and changes in the economy.

But some researchers suggest that labor markets have become less dynamic since 2000, and even more so since 2007, making them less adaptable just as the shock of trade with China hit and then worsened...


China Shock

The shock of trade with China was different than the shock of U.S. trade with other countries such as Mexico, Japan and Asian “tiger” economies such as Taiwan and Hong Kong, research shows.

The scale of import competition from China was immense, dislocating millions of U.S. manufacturing workers, who had trouble adjusting and finding new work...


Political Blowback

The shock of trade with China also has had political repercussions. Those include polarizing congressional districts, increasing voter turnout and possibly helping Democrats...

In the past, Democrats benefited from taking positions that restrict trade and offer assistance to people exposed to trade shocks.

The researchers’ analysis didn’t include the results of the 2016 presidential primaries, which resulted in Donald Trump as the Republican presidential nominee.

Mr. Trump has taken tough-on-trade positions.

------
Link: http://blogs.wsj.com/economics/2016/08/11/why-china-trade-hit-u-s-workers-unexpectedly-hard/