Answering the Critics: Why Large American Gains from Globalization Are Plausible

The Peterson Institute calculates that the US economy is approximately $1 trillion richer each year owing to past globalization—the payoff both from technological innovation and from policy liberalization—and could gain another $500 billion annually from future liberalization (Bradford, Grieco, and Hufbauer 2005 [pdf]). These estimates have attracted sharp criticism, notably from Dani Rodrik...