> Interviewer: Ah, the lovely language of economics once again. “Costlessly reallocate to their next best opportunity,” meaning that some American who loses his manufacturing job just hops over to the next good job, which just happens to be available, near where he’s already living, and for which he just happens to be perfectly qualified for…
> Economist: That’s not what we see. We see those falls in manufacturing employment correspond to about equally large falls in overall employment rates over the first 10 years in those trade-impacted locations. So every half a point that manufacturing falls, we see a total decline of about a half a point. So some people are leaving the labor market, some people are going into unemployment. Some people are going on to disability. And so the reallocation process seems to be slow, frictional, and scarring.
[1]https://freakonomics.com/podcast/did-china-eat-americas-jobs...