A wave of working-class anger and discontent over lost manufacturing jobs is credited by many with helping Donald Trump win the White House, but a Bay Area Council Economic Institute analysis released this week (Dec. 14) suggests that a protectionist response on foreign trade and pulling back from free trade agreements, in particular, could have serious economic downsides for the U.S. and California. The analysis argues instead for boosting domestic competitiveness through aggressive worker retraining to adapt to an increasingly knowledge-based economy, reforming tax policy to incentivize new business investment and doubling down on free trade expansion. The analysis was released the same day President-elect Trump met with a number of leading tech titans for a conversation that was expected to cover many of the same issues. The Economic Institute is sharing the analysis with the Trump transition team.

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