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Until recently, Republicans tended to back free trade and Democrats tended to worry about imports pushing down working class wages [note 5]. The role of trade is one of the most complicated and subtle economic questions. Some Democrats were persuaded that the overall benefit to the nation from cheaper imports was greater than the harm to workers, and could be compensated by other laws. Arguably they were wrong about that.
To his credit, Trump put free trade back on the agenda. Unfortunately, his chaotic policies were not effective. Some of his actions on bringing back manufacturing to America was little more than marketing, and his policies tended to inappropriately lump together low-wage protectionist countries like China with high-wage democracies like Canada or UK.
The Biden Administration has focused on some key areas where government can play an important role. These start with computer chips. The US invented them. Consumers use them for everything. The military relies on them. A supply interruption would be disastrous. Taiwan supplies them, but is under threat of blockade or invasion from China. The CHIPS and Science Act (2022) is bringing manufacture of the most advanced ones back to the US with tax incentives and R&D funding. The Biden Administration has also signed a bill to promote American manufacturing for infrastructure and renewable energy.
Manufacturing underlies and supports many sectors of the economy, and generates employment for people with all levels of formal education, from high school to grad school. Manufacturing employment dropped under Trump, mostly because of Covid, and rose by about 700,000 from the inauguration of Biden and Harris to September 2024.
Biden signed other laws which boosted jobs for workers with all levels of formal education. The Infrastructure Bill (2021) was promised – but never delivered – by Trump, and was passed by Democrats and a few Republicans. The Inflation Reduction Act (2022) is designed to restore American competitiveness in technology for cleaner energy. It was passed with votes by all Congressional Democrats and no Republicans.