As large segments of the Right and Left embrace protectionism, Americaโs once bipartisan free-trade consensus is castigated as the culprit of various social problems, especially the breakdown of the family.ย ย
Pat Buchanan, a long-time proponent of economic nationalism, wrote in his 1998 book The Great Betrayal: โBroken homes, uprooted families, vanished dreams, delinquency, vandalism, crime โ these are the hidden costs of free trade.โ
This narrative has become a clichรฉ populist trope in recent years, with many high-profile voices attributing family dissolution to โneoliberalโ globalization and the purported โdeindustrializationโ of the United States.
But the role of trade liberalization in the breakdown of the American family was negligible for two primary reasons: 1) the decline in marriage and rise in divorce and illegitimacy rates preceded the era of economic globalization; and 2) technological change, not outsourcing, has been the premier factor in waning manufacturing employment.
Out-of-wedlock births in the US have been increasing for nearly a century, trending upward long before the triumph of โneoliberalism.โ In the years 1940-1965, the US illegitimacy rate more than tripled from 7.1 to 23.5 (births per 1,000 women). It continued to rise dramatically into the 21st century, with around 40 percent of American children presently born to unwed mothers each year.ย ย
Widespread access to abortion and contraceptives did not reverse the spike in out-of-wedlock births. Why? A profound change in social norms occurred in post-war American life.ย ย
A significant transformation was the disappearance of an old custom: the โshotgun marriage.โ If an unmarried woman became pregnant, she and her partner once faced strong social pressures to marry prior to the birth of their child. This was not a uniquely American, ultra-conservative norm, but a โuniversal sociological lawโ in every culture, according to anthropologist Bronislaw Malinowski.
A 1996 analysis co-authored by current US Treasury Secretary Janet Yellen found that the decline in shotgun marriages โhas been a major contributor to the increase in the out-of-wedlock birth ratio for both whites and blacks.โ
Even in the late 1960s โ the height of the counterculture movement that celebrated โfree loveโ โ unmarried couples who conceived were often still expected to exchange vows. As one San Francisco resident said, โIf a girl gets pregnant you married her. There wasn’t no choice. So I married her.โ
But the hippiesโ social revolution eventually had its repercussions on American family life and social stability. While not every life is improved by such social pressures, Yellen and her co-authors concluded that the illegitimacy rate increase would have been 75 percent lower for whites and 60 percent lower for blacks in the years 1985-1989 had the shotgun marriage custom continued.
Illegitimacy is not just a crisis of less-educated populations in Rust Belt or inner-city communities. In recent years, a greater number of educated women are having children before, or apart from, marriage. Among women in their 30s with a bachelorโs degree or higher, one quarter have given birth out-of-wedlock, up from just 4 percent in 1996.
In addition, the drift away from traditional marriage long precedes alleged deindustrialization. The marriage rate dropped sharply immediately after World War II, briefly recovered in the 1960s, and has fallen ever since, congruent with womenโs educational and economic advancement. An analogous trend can be observed across the developed world, from Japan and South Korea to Australia and the European Union.
The decline in marriage has coincided with an increase in cohabitation. For young American adults ages 18-24 โ the approximate age range for which out-of-wedlock births are consistently the highest โ cohabitation is now more common than living with a spouse.
These developments reflect more progressive beliefs about marriage and sexuality, particularly among millennials and Gen Z. But they certainly cannot be ascribed to free trade.
The data present a similar picture regarding the evolution of divorce. In the first half of the 20th century, the divorce rate more than doubled. It skyrocketed between 1960-1980 โ the era of second-wave feminism and sexual liberation โ when no-fault divorce was legalized in most US states, beginning with California in 1969. But even as globalization reshaped the American economy after 1980, the divorce rate has trended downward.
Economic populists who chide the โmarket fundamentalismโ of โthe last 40 yearsโ as the monolithic destroyer of American families and communities sound increasingly like Marxists, attributing social pathologies almost exclusively to material conditions. And their solutions, i.e. protectionism and industrial policy, are equally materialistic and facile โ as if tariffs can reinvigorate Americansโ devotion to traditional social norms.
The American family wonโt be restored through impetuous jolts of economic populism.
Apart from legitimate national security concerns, the regression in US trade policy toward protectionism is based on the misconception that the American manufacturing base has been decimated and outsourced.
In reality, US real manufacturing output continues to grow while manufacturing employment decreases. This is a result of manufacturing firms adopting new technologies that enable them to produce more with fewer workers.
Even under NAFTA, Americans typically did not hear a โgiant sucking sound,โ but rather the whirring of cutting-edge machinery, prior to the disappearance of manufacturing jobs. The introduction of a single robot reduced employment by 3.3 workers from 1990-2007, according to a study published in the Journal of Political Economy.
In the years 2000-2010 โ the so-called โChina shock,โ when US manufacturing employment declined precipitously โ nearly 88 percent of manufacturing job losses were the result of productivity growth, chiefly through automation and information technology, another study concluded.
It wasnโt China that took so many of our jobs โ it was the robots. And protectionism wonโt solve the problem of technological unemployment. Higher prices via tariffs may encourage more firms to lay off workers and introduce labor-saving devices, thus exacerbating the problem.
Even if protectionist measures were sound, efficient, and delivered on their promises, it is unlikely that replenishing Rust Belt communities with high-paying manufacturing jobs would remedy widespread social maladies. The positive economic shocks associated with โfracking boomsโ in recent decades, which boosted the earnings of blue-collar men, did not improve marriage or illegitimacy rates.
Itโs vital that we examine not just the economic alterations of the 1980s, but the radical social disruptions of the 1960s, to accurately diagnose our current societal ills. Imprudent economic policy changes that donโt address the root of these complex issues โ or are palpably ignorant of existing economic realities โ may only worsen our current situation.
As Brookings Institution economist Isabel V. Sawhill pointed out, โa purely economic theory falls short as an explanation of the dramatic transformation of family life in the US in recent decades. Social norms, womenโs changing roles, and sexual liberation have to be factored into the equation.โ
The American family wonโt be restored through impetuous jolts of economic populism. Rather than abandoning free trade, we should cease financially incentivizing single parenthood and reduce excessive welfare provisions exploited by able-bodied adults.ย
But ultimately, rebuilding the family as a cornerstone of American life will require great deliberation, time, and effort that transcends public policy. Whatโs most needed is a full-fledged revival of American civil society and a rediscovery of the Tocquevillian virtues which made America flourish and prosper for generations.
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