Protectionism only depresses investor confidence and prolongs sluggishness. In the United States, exports accounted for over one- quarter of our economic growth over the last decade and support an estimated 12 million jobs. For the European Union as a whole, exports accounted for an estimated 45 percent of economic growth during the 1990s. When trade is restricted, hard-working families are forced to devote a larger portion of their paychecks to more expensive food, clothing, and appliances. Trade protection is a hidden tax on every consumer.
Trade is also essential for economic growth in developing nations.
A recent World Bank study analyzed the economic performance of globalizing and non-globalizing developing countries. The study found that in the 1990s, the income per person for globalizing developing countries grew more than 5 percent per year. For non- globalizing countries, annual incomes declined by more than 1 percent per year. The study also found that as trade grew and economies expanded, people with lower incomes realized a proportionate share of the benefits. Absolute poverty in the globalizing developing countries has dropped sharply in the last 20 years.