Cato Daily Podcast Free Trade Didn’t Kill the Middle Class
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Apr 11, 2025 Norbert Michel, Cato’s Vice President and Director of the Center for Monetary and Financial Alternatives, dives into the misconceptions surrounding free trade and its impact on the middle class. He argues that tariffs are based on misunderstandings of data and that free trade has greatly benefited most Americans, contrary to common belief. Michel challenges nostalgic views of the past, unpacks wage stagnation, and emphasizes the economic progress since the 1970s. He encourages a recognition of the advantages of trade agreements for both the U.S. and its partners.
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Middle-Class Growth
- The American middle class has shrunk not because of decimation, but due to increased wealth.
- Many former middle-class individuals have transitioned into higher income brackets.
1950s Nostalgia
- Nostalgia for the 1950s is misplaced, especially for women and African Americans who experienced less opportunity in that era.
- Common myths about cheaper housing in the past fail to account for smaller sizes, lack of amenities, and overall lower quality.
Difficult Jobs
- Many physically demanding jobs, such as coal mining and mill work, are jobs people strive to leave.
- Americans have largely transitioned away from such difficult labor.