Study: China Trade Did More Damage To US Economy Than Anyone Knew

By Susie Madrak

Workers have said all along that U.S. trade policies were killing American jobs, and now the research is finally catching up to them. Maybe we'll be smart enough to drop the three Bush trade agreements Obama is currently trying to push:

For years, economists have told Americans worried that cheap Chinese imports will kill jobs that the benefits of trade with China far outweigh its costs.

But new research suggests the damage to the U.S. has been deeper than these economists have supposed. The study, conducted by a team of three economists, doesn't challenge the traditional view that trade is ultimately good for the economy. Workers who lose jobs do eventually find new work or retire, while the benefits from trade, such as lower prices, remain. The problem is the speed at which China has surged as an exporter—overwhelming the normal process of adaptation.