Talking Points: Response to Peterson Institute Pro-TPP Paper

Below is a briefing note called, “Assuming Away Unemployment and Trade Deficits from the TPP” from the team at Tufts University that debunked the original Peterson Institute for International Economics (PIIE) TPP study which this latest missive, “Adjustment & Income Distribution Impacts of the TPP” by PIIE’s Robert Lawrence and Tyler Moran, is premised.

By Public Citizen's Global Trade Watch

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In an old joke, a shipwrecked economist is asked for his counsel on how the stranded group can be rescued. “Assume we have a boat,” he begins.

Robert Lawrence and Tyler Moran, writing for the Peterson Institute for International Economics, seem to have missed the joke in their recent repeat of the same flawed assumptions of their colleagues’ hugely optimistic assessment of the Trans-Pacific Partnership (TPP) Agreement which prompted our own paper, “Trading Down: Unemployment, Inequality, and Other Risks of the TransPacific Partnership.”

Claiming to address contrarian findings that the TPP may well cause job losses and increase income inequality, Lawrence and Moran assume away the causes – downward pressure on wages and employment due to the consequent “race to the bottom” – which have made free trade agreements so controversial.