Tag: Russell Roberts

Quote for Discussion: 2.3.2008

Don argues in the book and in the podcast that to point to an American steel worker put out of work by imports of Brazilian steel and say that he is “harmed by trade” is to misunderstand the nature of trade and its winners and losers. He says it’s like saying that a man whose wife leaves him for another man is harmed by love. After all, the man married because of love. The man is the product of his parents who were touched by love. So it is with the steel worker. His steel job exists because of trade. His whole life is supported by trade of various kinds. So in what sense is he “harmed by trade?”

It’s a profound point. It forces you to see just how trade and specialization and the division of labor create the incredible lives we lead, lives of wealth and health unimagined by previous generations.

But having said that, I think there is something else to add, something about the way our self-worth and pride and satisfaction are tied up in our work. An out-of-work steel worker still has a very good life compared to generations past and the success of his life up until the loss of his job is indeed due to trade (and sometimes to the protectionism that worker would like to see made stronger). But there’s no denying that it’s very tough on a person who has invested most of his life in a particular skill to suddenly find that there’s no demand for that skill. Yes, it’s the price of progress and it’s a price worth paying. Yes, it’s not particular to foreign trade, as Don points out, but is the result of all kinds of economic change. But there is something deeply poignant about it, nevertheless.

It is a mistake to use protectionism to keep that worker from having to deal with change. But that doesn’t change the potential sadness of the situation. I’ve argued that the real consolation for that worker who loses his job and struggles to find another that is as satisfying is knowing (if he knows any economics) that his children and grandchildren will lead better lives because we tolerate economic change.

Russell Roberts, Café Hayek