Trade Wars Are Class Wars

Winner of the 2021 Lionel Gelber Prize: A provocative look at how today’s trade conflicts are caused by governments promoting the interests of elites at the expense of workers.

“The authors weave a complex tapestry of monetary, fiscal and social policies through history and offer opinions about what went right and what went wrong . . . Worth reading for their insights into the history of trade and finance.”—George Melloan, Wall Street Journal

"This is a very important book."—Martin Wolf, Financial Times

Trade Wars Are Class Wars by Matthew C. Klein and Michael Pettis explores how trade disputes are often misunderstood as conflicts between countries with competing national interests. The authors reveal that they are frequently the unintended outcome of domestic political choices that prioritise the interests of the rich over those of workers and ordinary retirees.

Klein and Pettis delve into the origins of today’s trade wars, tracing back to decisions made by politicians and business leaders in China, Europe, and the United States over the last thirty years. During this period, the wealthy have thrived while workers face challenges, such as being unable to afford the goods they produce, job loss, or being pushed into greater debt.

In this thought-provoking challenge to mainstream views, the authors provide a cohesive narrative that illustrates how the class wars driven by rising inequality pose a threat to the global economy and international peace—and offer insights on what can be done to address these issues.

Longlisted for the 2020 Financial Times & McKinsey Business Book of the Year Award and named a Best Business Book of 2020 by Strategy + Business.