An Evaluation of Batra's "Fallacy of Free Trade."

Farhad Rassekh

Review of International Economics, 1994, vol. 2, issue 1, 76-84

Abstract: Batra (1992) argues that international trade since 1972 has lowered the living standards of most Americans (whose income results from providing labor services), while benefiting the small group of capital owners. This commentary shows that Batra's arguments are based on incorrect data and that his anlyses are grossly lopsided. Batra further claims that the manufacturing base of the United States is shrinking due to international trade and that, therefore, this sector should be protected. The facts, however, counter Batra's contention, thereby dealing a fatal blow to his policy recommendation. This commentary refutes several additional assertions in Batra's paper. Copyright 1994 by Blackwell Publishing Ltd.

Date: 1994
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