Addressing hardships requires both redistribution and regulation, writes Swati Dhingra of the London School of Economics  Workers remain exposed to hardship from changes in their economic environment. Many have argued that these disparities have polarised people and contributed to the current rise in nationalist politics. The common solution suggested by some politicians is that putting up protectionist barriers will undo the economic damage suffered by those who lost out earlier. This is not what is happening. Protectionism is not undoing the losses; it is de-skilling workers even more. Take Brexit, which involves Britain breaking from its largest trading partner, the European Union. The depreciation of sterling which followed the Brexit referendum is already hurting British workers. Forthcoming research from the Centre for Economic Performance at LSE finds that British firms have cut back on training programmes for their workers, in anticipation of reduced trade ties with the EU. Employers provide a large share of skills training, so the Brexit-induced reductions will have a long-term negative impact on human capital and worker earnings—quite the opposite of what the protectionist policy is intended to achieve.  

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