We’ve long argued that by far the two most powerful factors for keeping prices low over the past forty years have been trade and technology. These both shifted out the supply curve and made nearly EVERYTHING except government less expensive.

Overall prices of all goods and services rose almost three times faster than import prices over the past three decades. Free trade is a big source of more affordable prices.

The other factor driving prices downward has been technology – with innovations such as cell phones, the Internet, and now robotics – which have seen 90% lower price tags.

Trade and high tech are both ironically two sectors of the economy that many of those on the right view with skepticism and sometimes hostility.