Debunking the Myth: Did Globalization Really Hollow Out the American Middle Class?
2025-05-08
This article challenges the popular narrative that globalization and trade deficits led to the decline of American manufacturing and the hollowing out of the middle class. While acknowledging the negative impact of the China shock on some manufacturing workers, the author argues that its effects have been exaggerated. American middle-class income has actually been growing, and the decline in manufacturing's share of GDP is attributed to multiple factors beyond trade deficits. The author calls for a more nuanced perspective on trade and industrial policy, urging readers to avoid being misled by a flawed narrative.