families, and provides the means for small businesses to start and to thrive, which is so important to the health of communities. this is not an abstract notion for me. as a community banker, i have seen how access to credit and support from a financial institution with deep roots in a community can make a direct and immediate difference in people ’ s lives. i continued to feel that way when i did the job you do, as a state banking commissioner, helping ensure that families and communities have access to financial services that are so important to their success. i enjoyed being a community banker, and i hope you know i ’ ve enjoyed working closely with all of you as a banking commissioner, and i now look forward to building a stronger partnership between all of you and the federal reserve board. thank you for the opportunity to speak to you today. i hope to see you soon in your states, and i wish you a productive and enjoyable visit to washington. 1 my views are my own and do not represent the view of the board of governors or its other members. 2 federal reserve system, conference of state bank supervisors, and the federal deposit insurance corp., 2018 community banking in the 21st century ( pdf ) ( research and policy conference, october 3 - 4, 2018 ). 3 pub. l. no. 115 – 174, 132 stat. 1296 ( 2018 ). 4 u. s. small business administration, office of advocacy, frequently asked questions about small business ( pdf ) ( august 2018 ). 4 / 4 bis central bankers'speeches

work during the past three years can accurately claim to have been made worse off by international competition. job loss in particular causes significant hardships for affected workers. for example, an analysis by henry farber ( 2003 ), using bls data on workers displaced for any reason, suggests that only about two - thirds of displaced workers found re - employment within three years, with some settling for part - time work. even when successful in finding full - time work, displaced workers experience on average a decline in earnings on the new job of about 8 percent. focusing on workers displaced by trade in particular, kletzer ( 2001 ) found that job losers in industries facing high levels of import competition were slightly less likely to be re - employed and experienced greater earnings losses, at about 13 percent on average, than workers displaced from industries facing less import competition. what can be done to help workers who lose their jobs because of competition from imports? attempts to restrict trade through the imposition of tariffs, quotas, or other trade barriers are not a good solution. such actions may temporarily slow job loss in affected industries. but they do so by imposing on the overall economy costs that typically are many times greater than the benefits. in the short run, the costs of trade barriers include higher prices for consumers and higher costs ( and thus reduced competitiveness ) for u. s. firms. trade barriers typically provoke retaliation from trading partners as well, with potentially large costs for exporters. and history shows that in the longer run, economic isolationism and retreat from international competition lead to bloated, inefficient industries, lower productivity, and lower living standards. the better policy approach is two - pronged. first, at the macro level, policy should be directed at helping to ensure that jobs become available for those who have been displaced. in particular, over time, appropriate monetary policies can help the economy achieve maximum employment with low inflation, irrespective of the trade situation. the nation ’ s trade policies, rather than attempting to restrict trade, should be used to push for even more trade. by opening markets abroad, trade policy provides greater opportunities for u. s. firms and workers. the second piece of a constructive policy toward trade is to help displaced workers train for and find new work. some steps in this direction have been taken. currently, the government ’ s principal program for helping workers displaced by trade is the trade adjustment assistance program, or taa. the congress has recently extended the