| Abstract: | The United States had a trade deficit of $170 billion in 1987 and, even though the value of the dollar has been declining, the deficit has shown no consistent pattern of improvement. The magnitude and persistence of the trade imbalance has led to a great deal of discussion of its impact on the U.S. economy and of policies that might be used to correct the imbalance. One major consideration that is often overlooked is the distributional and equity effect of the trade situation on the poor. While some advocates embrace protectionist policies as a means of “saving” jobs for low-income Americans, others argue that these measures raise the cost of goods used by the poor with no guarantee that jobs are actually saved. The following article reviews the available evidence on the position of low-income Americans under a policy of protectionism. |
