New CFR Report Showcases American Views on Economic Leadership
By experts and staff
- Published
“International economic policy would benefit from more local input; Americans want the tools to compete—in a fair fight; and communicating the costs and benefits of policies is vital,” states a new report from the Council on Foreign Relations (CFR), American Views on Economic Leadership.
“The United States’ international economic policies may be crafted in Washington, DC, but their impact is concentrated in local communities of workers and consumers across the country,” said CFR President Michael Froman. “Amid President Trump’s unprecedented rethink of the United States’ approach to trade, tariffs, and more—this timely CFR report offers invaluable insights on how Americans view and are impacted by key shifts in our international economic policies.”
The coauthors of the report—Matthew P. Goodman, director of CFR’s RealEcon Initiative, and Allison Smith, associate director of RealEcon—drew their conclusions from seven themes that emerged during conversations with over four hundred people in nine states:
- “U.S. economic dynamism and insecurity live side by side. Cutting-edge innovation is happening all around the country. However, many Americans are struggling with the high cost of living, especially for housing and childcare.”
- “U.S. employers are struggling to find qualified workers. Business leaders complain that many in the workforce lack requisite skills or are unwilling or unable to perform available jobs.”
- “Manufacturing remains a vital part of the U.S. economy. Despite significant job loss in the sector, manufacturing still plays an important role in spurring innovation, ensuring the production of critical goods, and preserving generational knowledge.”
- “Americans’ views on trade are complex. Most understand the benefits of trade but are frustrated by unfair practices and unequal distribution of trade’s benefits.”
- “Foreign direct investment is generally welcome—with caveats. Most states are eager to attract FDI to create jobs and opportunity, but some critics are concerned that investments fail to deliver promised economic benefits.”
- “Americans want to help other countries but have reservations about foreign aid. Many understand the humanitarian and strategic value of foreign aid but have misperceptions about its costs and concerns about its use.”
- “Concerns about China are more muted throughout the country than in Washington. Despite concerns about national security and unfair trade practices, many Americans appear less animated about threats from China than debates in Washington would suggest.”
According to the authors, “U.S. engagement in the global economy still produces substantial economic and strategic benefits for the United States, as well as disruptions and risks. The challenge for policymakers in Washington is to design a new approach to U.S. international economic engagement that maximizes the benefits, manages the downsides, and wins broad popular support.”
CFR’s RealEcon Initiative seeks to assess the role of the United States in the international economy, analyze what is at stake for the American people, and identify the trade-offs in different policy approaches.
To read American Views on Economic Leadership, visit https://www.cfr.org/listening-tour.
To interview the authors, please contact [email protected].