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Harvard economist: We were too optimistic about free trade & globalization. It's time to fix that.
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Workers without college degrees are being left behind. Since the 1980s, the gap between those at the top of the income spectrum and everyone else has been widening, due to a number of phenomena, including increased competition from China, the decline of the coal industry, and automation. These seismic changes have laid bare the shortcomings of the American welfare state, which can help workers absorb short term job loss but leaves them in a precarious state for longer term unemployment.
Solving this problem will require new ways of thinking and a better understanding of how global economic forces affect local economies. That has been the focus of Gordon Hanson, Peter Wertheim Professor of Urban Policy at Harvard Kennedy School. Professor Hanson says that the economic consensus in the 1980s and 1990s, which assumed that free trade would lead to massive growth for everyone, was wildly optimistic. To address regional economic divides, Professor Hanson says policymakers will have to consider approaches that would have once been thought too economically intrusive.
Some of Professor Hanson's work on "The China Shock" and labor markets can be read here:
"The China Shock: Learning from Labor Market Adjustment to Large Changes in Trade"
with David H. Autor and David Dorn
"On the Persistance of the China Shock"
with David H Autor and David Dorn
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About Harvard Kennedy School:
The John F. Kennedy School of Government at Harvard University is a graduate and professional school that brings together students, scholars, and practitioners who combine thought and action to make the world a better place.
Our mission is to improve public policy and public leadership across the United States and around the world so that people can lead safer, freer, and more prosperous lives. Harvard Kennedy School teaches current and future leaders the skills they need to effectively advance the public purpose in the public, nonprofit, and private sectors. Our renowned faculty and trailblazing research centers pioneer bold new ideas. And as the most international school at Harvard, we convene global leaders in the Forum, host visiting experts in the classroom, and attract a diverse community of faculty, students, and staff.
Solving this problem will require new ways of thinking and a better understanding of how global economic forces affect local economies. That has been the focus of Gordon Hanson, Peter Wertheim Professor of Urban Policy at Harvard Kennedy School. Professor Hanson says that the economic consensus in the 1980s and 1990s, which assumed that free trade would lead to massive growth for everyone, was wildly optimistic. To address regional economic divides, Professor Hanson says policymakers will have to consider approaches that would have once been thought too economically intrusive.
Some of Professor Hanson's work on "The China Shock" and labor markets can be read here:
"The China Shock: Learning from Labor Market Adjustment to Large Changes in Trade"
with David H. Autor and David Dorn
"On the Persistance of the China Shock"
with David H Autor and David Dorn
----------------------
About Harvard Kennedy School:
The John F. Kennedy School of Government at Harvard University is a graduate and professional school that brings together students, scholars, and practitioners who combine thought and action to make the world a better place.
Our mission is to improve public policy and public leadership across the United States and around the world so that people can lead safer, freer, and more prosperous lives. Harvard Kennedy School teaches current and future leaders the skills they need to effectively advance the public purpose in the public, nonprofit, and private sectors. Our renowned faculty and trailblazing research centers pioneer bold new ideas. And as the most international school at Harvard, we convene global leaders in the Forum, host visiting experts in the classroom, and attract a diverse community of faculty, students, and staff.
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