The U.S. economy has been growing steadily for a record eight years, inflation is low, unemployment is small, and interest rates are low. Yet 58 percent of the population believes that foreign trade is bad for the U.S. economy because cheap imports hurt wages and jobs. Only 32 percent thinks that trade is good for the U.S. economy, creating foreign demand, U.S. economic growth and jobs.
People appear concerned about layoffs and the trade deficit.
They believe that they are able to buy cheap imports, but at the cost of Americans' jobs. President Clinton has asked Commerce Secretary Daley to head a trade-education initiative. The belief is that when people have more information, they will favor free trade. For example, in South Carolina between 1988 and 1994, while there were job losses in the textile and apparel industries, foreign companies and their suppliers employed more labor, resulting in a net increase in employment of 9 percent. Draw production possibility frontiers for South Carolina and overseas trading partners.