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August 1, 2007

Economists Sign Free-Trade Petition

The Harvard economist Greg Mankiw has posted a petition signed by 1,028 noted economists on his blog, asking Congress to oppose protectionist trade policies against China. The petition notes that trade between the two countries has grown by an average of almost 20 percent a year between 2000 and 2006.

“These economic benefits were made possible in large part because both China and the United States embraced freer trade,” the petition says.

“As economists, we understand the vital and beneficial role that free trade plays in the world economy. Conversely, we believe that barriers to free trade destroy wealth and benefit no one in the long run. Because of these fundamental economic principles, we sign this letter to advise Congress against imposing retaliatory trade measures against China.”

Petitioners have taken out an ad out in today’s Wall Street Journal. Alas, notes Mankiw, there was a similar petition, signed by a similar number of dignitaries, in 1930. Do such petitions work? “Sadly, it did not last time,” says Mankiw.

Karen Winkler | Posted on Wednesday August 1, 2007 | Permalink