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While free trade offers significant benefits from an economic perspective, the unequal distribution of these benefits across society raises concerns. I argue that a more moderate approach may be preferable when considering society as a whole.

Economists support free trade for valid reasons, including its ability to maximize competitive advantage, encourage innovation, ensure fair competition, and boost productivity. In turn, these benefits give consumers greater access to diverse goods and services and raise their standard of living. In her book International Trade: What Everyone Should Know, Anne Krueger also highlights the importance of multilateral agreements in trade policies to address emerging challenges, such as environmental protection. On the other hand, excessive protectionism hinders economic exchanges and international collaboration. Krueger criticizes protectionism as harmful to efficiency and growth, emphasizing that “trade restrictions and uncertainty slow down global economic activity.” She also suggests that protectionism destroys jobs as free trade, different from popular belief, creates more employment opportunities.

Despite these benefits, free trade presents some legitimate concerns. In his book The Globalization Paradox, Dani Rodrik draws attention to their unequal distribution across society. He explains that some groups “necessarily suffer long-term losses in income from free trade,” oftentimes unskilled workers, such as high school dropouts. By comparison, highly educated individuals tend to be less protectionist, as they are less likely to experience income losses from trade expansion. Thus, the freer the trade, the greater the distributional “costs” on vulnerable populations. In response to technological progress as a justification for free trade, Rodrik also points to worker exploitation in countries with weak labor protections and the disproportionate impact of technological progress on different social groups. These concerns are critical in determining the optimal level of international free trade.

The economic benefits of free trade are undeniable, but the issue lies in who reap these benefits and at what cost. Therefore, when assessing whether free trade is beneficial for society, it is important to take into account its impact across different socioeconomic classes. While it is commonly argued that short-term harm to certain groups eventually gives way to long-term benefits overall, there is no guarantee of this outcome. In fact, the prosperity of one group oftentimes comes at the expense of another. The truth is: that attitudes toward trade policies vary widely based on identities, educational backgrounds, personal values, and so on. Given the reality of widespread social inequality and the complexities of trade policies in practice, moderate trade may be the better path forward compared to free trade.