US-China Trade Gap Costs $37 Billion in Lost Wages

The growing trade deficit between the world’s two largest economies cost the U.S. $37 billion in lost wages in 2011, a study by the Economic Policy Institute (EPI) has found, and is likely to cost the economy more as the deficit widens further.

According to the study, 2.7 million jobs have been lost in the U.S. between 2001, when China entered the World Trade Organization, and 2011, the bulk of which were in the manufacturing sector. The report took 2011 as a snapshot of the cost of these losses and found that when these displaced employees were re-employed in non-trade-related industries, they lost an average of $13,504 per worker in 2011, creating a total of $37 billion in wage losses over the year.

via CNBC

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