trade is not Parento optimal

Consider the disconnect between economists and workers. The former have not been sufficiently upfront about the distributional consequences of rapid changes in technology and globalisation. Amongst economists, a belief in free trade is totemic. But, while trade makes countries better off, it does not raise all boats; in the clinical words of the economist, trade is not Pareto optimal. Rather, the benefits from trade are unequally spread across individuals and time.

Mark Carney, speech given at Liverpool John Moores University, 5DEC2016

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