ABSTRACT
How often have you heard people say that they believe in free trade, but still support some state intervention in the economy? Politically, it makes sense for the state to assist businesses in certain cases, such as when farmers are hit by an unexpected drought. But is there an equally compelling case for the government to compensate manufacturing workers whose jobs move to Mexico? This was the question in March 2016, when 14,000 employees at Carrier, a manufacturer of heating and air-conditioning systems, were notied suddenly that the company was moving production to Mexico, where wages were lower.2 Workers were furious that they would have to nd new jobs in the U.S. Rust Belt, a region where good-paying manufacturing jobs have been disappearing since the 1980s.
