Rodrik largely agrees that in normal circumstances cheap Chinese imports are a welfare-enhancing terms-of-trade gift to US consumers, but argues that at ~9-10% US unemployment, if there is a Keynesian demand-side element, the external deficit being a 'gift' to consumers is only partly true—paralleling Keynes himself turning to protectionism in the 1930s.
causalpending
Speaker
Dani RodrikEvidence Quote
“if you believe that there is some element of Keynesian unemployment in the United States today then the argument about... the United States being a gift to US consumers... there's only partway through”
Created: 6/16/2026, 2:24:26 PM
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