CED Report Details How U.S. Should Approach Global Trade
WASHINGTON, Sept. 25, 2017 /PRNewswire-USNewswire/ -- Today, the Committee for Economic Development of The Conference Board (CED) released a report with recommendations for aiding U.S. workers adversely impacted by global trade. Trade Under Attack also details trade's immense contribution to the U.S. economy and warns that America risks forfeiting its leadership position if it retreats from trade.
The study by the non-partisan, business-led public policy organization also clarifies misconceptions that trade is a major source of America's economic challenges. Many forces – notably, technological change – have devalued skills and disrupted careers. For example, manufacturing employment continues to decline, not only in the U.S., but also in its trading partner nations that many blame for causing job losses in U.S. manufacturing.
CED recommends that instead of focusing on protecting specific jobs, U.S. policy should seek to help individuals displaced by trade and technology. The recommendations in the report are as follows:
- Aim to reequip displaced workers to find new jobs, including through job search assistance, specific skill training, creative skills assessments and certification, basic aptitude training, and relocation assistance, as appropriate. U.S. policymakers must treat with respect the complaints of those who have endured work displacement and job loss. The nation can no longer assume that robust economic growth will effortlessly move workers dislocated because of trade or other forces to new high-paying jobs.
- Create incentives for workers to stay in the workforce rather than withdrawing and letting their skills erode, including through payment of additional unemployment compensation if workers accept an early job offer, along with wage insurance, which compensates workers for some portion of wage loss if only lower-paying jobs are available. Rising skill demands will require new efforts (some experimental) to improve old skills and develop new ones.
- Support the highest standards of education over the entire age continuum, including through mid-career training and retraining for workers who are challenged by technology or trade. Policymakers should invest in youth programs providing community-based job training, apprenticeships, and educational services that will increase the chances of future job prospects. The United States has fallen behind many competitor nations in several of the links in this vital education-and-training chain.
View the report, along with the related podcast and social media toolkit, here.
About the Committee for Economic Development
Founded in 1942, the Committee for Economic Development of The Conference Board (CED) is a nonprofit, nonpartisan, business–led public policy organization that delivers well–researched analysis and reasoned solutions to our nation's most critical issues. CED's work is grounded on seven core principles: sustainable capitalism, long–term economic growth, efficient fiscal and regulatory policy, competitive and open markets, a globally competitive workforce, equal economic opportunity, and nonpartisanship in the nation's interest. Learn more at www.ced.org.
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