How have Americans benefited from globalization?
America’s openness to the world economy over the past 50 years has added $1 trillion to our annual GDP. This translates into an average gain of $10,000 every year for a family of four earning the median U.S. income of $46,000. As we move further to reduce barriers to trade, particularly in the services arena where the U.S. holds a comparative advantage, some economists estimate that we will add another $500 billion annually to U.S. GDP and another $5,000 to the average U.S. household. We often underestimate the benefits of globalization because we often overlook the broader beneficial impact of international trade on the U.S. economy. To the extent that our openness to the world economy fosters greater competition and competition drives quality up and prices down, inflation remains in check. That translates into lower interest rates and higher home ownership. It would surprise many who listen to Lou Dobbs’s tirades about the inequities of international trade that home ownership in the
