Why is the Mass Public Not More Supportive of Free Trade? Evidence from the United States

Abstract

AbstractThis article explores why citizens favor protection despite the economic case for free trade. It argues that due to a lack of training and in an environment of stable prices, many individuals are not aware of the consumption benefits. Even when they are aware, citizens tend to discount these benefits due to media coverage of the employment costs and loss aversion. The article presents survey evidence from an American sample, showing that a belief in lost jobs is more strongly associated with trade preferences than a belief in lower prices. Given that the former pushes citizens toward less favorable trade attitudes, it also presents evidence from a priming experiment, testing if attitudes can be moved in a more favorable direction with positive information. Factual information about the consumer benefits has no effect, but information about the employment effects shifts attitudes positively. In the present environment, it thus appears more effective to prime pro-trade attitudes by appealing to jobs than to prices.