Abstract


 
 
 
 
 
 This article proposes a solution to the challenges posed by free trade on domestic industries, particularly in the United States' manufacturing sector. The solution involves implementing a progressive tax system to tax corporations benefiting from free trade more heavily and utilizing the additional revenue to enhance Trade Adjustment Assistance (TAA) programs. The TAA programs will offer resources and training to displaced workers, facilitating their transition to other industries and increasing reemployment rates and wage replacement. Despite potential drawbacks, such as resistance from high-earning individuals and implementation costs, the overall benefits of the proposed TAA expansion outweigh the negatives. The article emphasizes the policy's alignment with Rawls' theory of justice as fairness and suggests that it is politically feasible and likely to gain international support due to its commitment to trade liberalization. The proposed approach aims to strike a balance between promoting free trade and protecting worker welfare.
 
 
 
 
 
 
 
 

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