Why Gains for U.S. Workers Are Good for the World

For half a century, America’s wage problem has also been the world’s trade problem. Since the mid-1970s, the United States has stood out among rich countries for its high percentage of low-wage workers, nearly one-quarter of the total workforce. That is three times the rate of France and more than twice that in Japan. And that high percentage has knock-on effects far into the middle class: Many better-paid U.S. workers—especially those in trade-exposed manufacturing industries—have had good reason to fear they are just one layoff away from being thrown into a huge pool of workers competing for poorly paid jobs in retail, health services, and fast food chains. That worry explains in part why Americans have voted for leaders who promise to protect industries such as steel and automobiles, which offer a dwindling number of good jobs.

The COVID-19 pandemic, however, may turn that story on its head, with lasting consequences both for the U.S. labor market and for trade relations with other countries.

Column by  , a columnist at Foreign Policy, Ross Distinguished Visiting Professor at Western Washington University, and a senior fellow at the Council on Foreign Relations.