Here in the United States, we, too, have greatly benefitted from the development of the global economy through expanded trade and investment with the rest of the world. Expanding exports is critically important to our nation's prosperity, but less widely recognized is that imports, too, contribute greatly to our economic well being. Moreover, trade is not a zero sum game. The whole world benefits when each country produces the goods and services where its comparative advantage is greatest. There is no doubt in my view that our open markets have contributed substantially to these economic conditions, and, while not dispositive, it is interesting to compare our economic performance of the last six years with the economic performance of other industrialized nations that are less open.
Trade restrictions result in higher prices and less efficiency.
But we must also recognize that trade, like technological development and all change, also produces dislocations, and it is essential to have strong programs to help those who are dislocated successfully re-enter the economy as rapidly as possible, both to minimize the human and economic costs and also to help sustain political support for open markets. We must also insist that trade not only be open but fair, to make the system work best for all nations. And, when this does not obtain, we must vigorously enforce our trade laws. While the market system does offer the best path to economic well being for a nation, and the global economy, it is clear that the global financial crisis has provided far more political room for opposing voices. Against that backdrop, let me offer three suggestions for strengthening the market system and, strengthening public and political support for that system.