October 12, 2011
Marketplace radio did a short segment this morning in which it cited estimates of job gains associated with increased exports from the Korean trade pact. Jobs are generated by net exports, which is equal to exports minus imports. While the trade deal will surely increase exports to Korea, it will also increase imports from Korea. If past agreements are any precedent, the increase in imports will exceed the increase in exports meaning that in the short-term the agreement would be a job loser. (In the longer term trade is about increasing efficiency, not jobs.)
Just reporting the jobs created by exports is incredibly irresponsible. It is like reporting one side of a football score, it tells listeners nothing. Marketplace’s reporters and editors should know this.
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