This past Wednesday, Katherine Tai, President-elect Joe Biden’s choice for U.S. trade representative, offered important insights on the incoming administration’s trade policy. She indicates that the Biden administration will have a “worker-centered trade policy” that recognizes the dual nature of economic life. She emphasized that people in a market economy are both consumers and producers and that we should not forget that the worker side of the equation has to be emphasized when tariffs are considered.

Tai makes a valid point. Yes, each employed worker is both a consumer and a producer. And, of course, in an economy characterized by economies of scale and division of labor, it’s hardly ever the case that any single worker would spend his or her monthly check on goods that the person produced. For example, as a university professor, I never purchased anything from my university other than a few items from the bookstore. And as much as I love to shop at Dollar Tree, it is surely the case that Dollar Tree never buys anything from me.