-No. 1. We “will use all our trade enforcement tools to hold China and other trading partners accountable because no country should be able to manipulate their currencies to gain a competitive advantage…. Trade agreements should crack down on the unfair and illegal subsidies other countries grant their businesses at the expense of ours.”

-No. 2. “We cannot allow China to continue its currency manipulation, exclusion of U.S. products from government purchases, and subsidization of Chinese companies to thwart American imports…. [Our nominee] will insist on parity in trade and stand ready to implement countervailing duties if other countries refuse to cooperate.”

The similarities of the parties’ stands on trade are even greater than these passages suggest. (No. 1 is from the Democrats’ platform, No. 2 from the GOP’s.) Donald Trump and Hillary Clinton have each gone far beyond the platform language in denouncing the Trans-Pacific Partnership and Nafta. The clear message they’re sending is hostility toward free trade. Over the past 70 years the world has achieved hard-won progress toward freer trade, and both candidates explicitly threaten to stop it dead in its tracks.

That’s an important problem. To say out loud what isn’t said often enough: Free trade is undeniably good for the economy, though the benefits are not distributed evenly. Trump and Clinton are hostile toward it because they’re trying to win the votes of Americans who blame trade agreements for taking away their jobs or the jobs of others, or for crushing their wages or benefits, or for hollowing out their towns.

Heaven knows all those things have happened, but trade isn’t the main reason. Whenever Trump, Clinton, or anyone else talks about bringing back manufacturing jobs by restricting trade, remember these facts:

The high water mark for U.S. manufacturing jobs was June 1979: There were 19,553,000 manufacturing workers that month, says the Bureau of Labor Statistics. Last month the number was 12,296,000. Yet today the U.S. produces manufactured goods worth 78% more in constant dollars than we produced in 1979. That is, we produce 78% more stuff with 37% fewer workers.

This is a global phenomenon. Everywhere on earth, every day, business people figure out how to make more stuff with fewer workers. That trend isn’t going to reverse.

Wise policy makers don’t bemoan this reality or try to bring back the past; instead they embrace economic change. Rusted-out old manufacturing towns can revive spectacularly – just look at Pittsburgh. But never again will America employ 19,553,000 manufacturing workers or any number remotely close. Trade deals didn’t eliminate most of the lost manufacturing jobs, and killing trade deals won’t bring them back. For Trump, Clinton, or anyone else to suggest otherwise is misleading and cruel.

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What We're Reading Today

Hillary Clinton becomes first woman nominated...
...as the presidential candidate of a major party. The historic decision came on a day with a more unified tone, as Bernie Sanders made the motion to name Clinton the nominee. Clinton had been working toward that moment since losing the nomination to then-Senator Barack Obama in 2008.  NBC News

China is no longer Apple's second largest market
Apple reported that third quarter profit fell 27%. A big reason is that sales in China fell 33% from last year. The drop moved China from Apple's second largest market to its third-largest, behind the U.S. and Europe. Despite problems with local authorities - including a ban on selling the iPhone 6 and iPhone 6s in Beijing, which is being contested - CEO Tim Cook reiterated Apple's plans to continue investing in the country.  TechCrunch

Marissa Mayer's major payout 
Yahoo CEO Mayer will receive far more than the previously reported $55 million as a result of selling the company's internet business to Lowell McAdam's Verizon. The real number is over $122 million because Yahoo's stock has risen 16% in recent months, increasing the value of her restricted stock and option; in addition, earlier calculations excluded some of her stock grants. Fortune

Hedge fund's culture questioned
An employee of the world's largest hedge fund, Ray Dalio's Bridgewater Associates, has accused it of creating an atmosphere "of fear and intimidation." Christopher Tarui has filed a complaint with the Connecticut Commission on Human Rights and Opportunities, claiming his manager propositioned him for sex for over a year. Tarui claims that when he brought the complaint to more senior managers, he was pressured to rescind the report. He says he delayed filing the report partly because the company culture encourages employees not to trust anyone. NYT

Building a Better Leader

General Electric gets rid of employee ratings
Instead, reviews will be a summary of insights and findings from continuing feedback provided via an app, in person, or on the phone. WSJ

Reverse mentoring catches on
Teaming an older employee with a younger one can help teach the older one how to use new technologies on the job. Target and United Health are using it to teach executives how to be more nimble. Fortune

Does it make more sense for your company to offer health insurance...
...or to have employees buy it through the healthcare exchanges? Here's a formula for weighing the decision.  MONEY

Stutter Steps

VW settlement passes major mark
U.S. District Judge Charles Breyer in San Francisco gave preliminary approval of a $10-billion settlement by Volkswagen in which Matthias Müller's company will buy back 475,000 vehicles with 2.0-liter engines. VW can soon begin telling car owners how much they're set to receive. A final approval hearing is set for October. VW is still working on a settlement for owners of 3.0-liter vehicles.   Fortune

Aviation experts to car makers: Move slowly on autonomous driving
The aviation industry began moving to autonomous technology long ago, and many companies have needed years to ensure safety as pilots adjusted. For companies like Elon Musk's Tesla, which reported the first death of a driver using autonomous technology, experts say drivers need more time and training to understand the capabilities of self-driving tools. WSJ

Twitter reports another disappointing quarter
Users increased 3% to 313 million from last year at Jack Dorsey's company, but revenue fell short of analyst estimates. The issue is tepid growth in advertising. Dorsey has signed a number of deals for live streaming of events including National Football League games, but weak user growth discourages advertisers, prompting continued rumors that the company is a takeover target. USA Today

Up or Out

Fox News has fired Michael Clemente, who was executive vice president of news until April, when he was demoted. Fortune

Dr. Neil Clark Warren, CEO and founder of eHarmony, will step down and will continue as chairman. Grant Langston succeeds him as CEO. CNNMoney

Fortune Reads and Videos

JetBlue may consider European flights
The domestic carrier has ordered Airbus Group's single-aisle A321 planes, which can be modified to cross the Atlantic. Fortune

Apple Pay now accounts for 75% of all U.S. contactless payments
And CEO Tim Cook says half of all transactions conducted through Apple Pay are outside the U.S. Fortune

Tumblr bloggers will soon be able to host ads
But users will be able to turn off the ads in their settings. Fortune

Google Maps gets an update
The new look is an effort to highlight surrounding points of interest. Fortune

On this day...