Question

What form does trade adjustment assistance take in the United States? How does such assistance promote political support for free-trade agreements? Do you think workers who lose their jobs because of changes in trade laws deserve special treatment relative to workers who lose their jobs because of other changes in the economy, say, changes in patterns of government spending?

Short answer

In the United States, assistance is provided to those workers who lose jobs due to changes in trade patterns.

It promotes political support for free trade agreements because the workers receive preferential treatment, making the government popular.

No, it is unfair for only a particular group of workers to receive special treatment.

Step-by-step solution

Step 1. The explanation for trade adjustment assistance 

The United States introduced Trade Adjustment Assistance Act in 2002 to help workers hurt by shifts in international trade patterns. The law provides cash assistance (beyond unemployment insurance) for up to 78 weeks for workers displaced by imports or the relocation of U.S. manufacturing plants to other countries.

Step 2. The political support for free trade agreements 

Trade adjustment assistance provides financial support to workers hurt by international trade. This helps create political support required to reduce trade barriers and promote free trade. Workers who receive favorable treatment from the government would support them. This is how this assistance raises political support.

The support for trade adjustment assistance comes from creating political support necessary to reduce trade barriers and export subsidies.

Step 3. The explanation for special treatment 

It is unfair to give special treatment to the workers who lose jobs due to changes in trade patterns.

This is because only a small fraction of workers lose jobs to trade patterns. At the same time, a lump sum portion of workers also loses their jobs because of changing demand patterns, changing technology, bad management, and other dynamic aspects of the economy. So it is unfair to assist only one group.