New Study Shows How Median-Income Earners Set to Lose Most From TPP
Washington, DC – A CBS MoneyWatch piece discusses a new study published by the non-partisan Center for Economic and Policy Research (CEPR) that finds the Trans-Pacific Partnership (TPP) will negatively impact wages for a majority of American workers. According to the study, the trade deal, “… will hurt most American workers’ wages despite promised it will help them…”
MoneyWatch explains how TPP will impact middle-income earners the most, “… the workers most likely to be hurt by this are median wage earners. Those in the bottom quarter of earnings won’t be much affected because their incomes are determined by the minimum wage. Top income earners, who are more protected from international competition, will likely see incomes rise as a result of TPP expansion of the terms and enforcement of copyrights and patents.”
The CEPR study also describes how the costs outweigh the benefits when it comes to trade deals meant to spur economic growth, “There are winners and losers from trade, and research has shown that trade contributes to inequality. In fact, it would take only a very small contribution to inequality due to trade to wipe out all of the gains that most workers would get from this agreement.”
“Today’s report only adds to the growing list of reasons why this trade deal does not serve the best interests of Americans,” said Teamsters General President James P. Hoffa. “Congress needs to fully investigate this agreement so that it benefits every family, not just the top few. We cannot allow businesses and this administration to fast track another bad trade bill down our throats.”
