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This post originally ran on Robert Reich’s Web page.
How can it be that the largest pending trade deal in history – a deal backed both by a Democratic president and Republican leaders in Congress – is nearly dead?
The Trans Pacific Partnership may yet squeak through Congress but its near-death experience offers an important lesson.
It’s not that labor unions have regained political power (union membership continues to dwindle and large corporations have more clout in Washington than ever) or that the President is especially weak (no president can pull off a major deal like this if the public isn’t behind him).
Economic theory told us so: Trade allows nations to specialize in what they do best, thereby fueling growth. And growth, we were told, is good for everyone.
But such arguments are less persuasive in this era of staggering inequality.
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