2007-02-06
Trade Deficits Are Good?
Very interested to know how you Pat Buchanan-ites will take this. US Agriculture has had nothing but trade surpluses, yet has not increased US jobs during this time. Also, the loss of per capita US manufacturing has been declining since the 1940s, with US trade deficits beginning only in the 1970s. Meanwhile, as US manufacturing has declined, US employment has increased as has worker productivity.
Subscribe to:
Post Comments (Atom)
3 comments:
"US Agriculture has had nothing but trade surpluses, yet has not increased US jobs during this time."
Oh, really? Does that include undocumented, seasonal migrant workers?
"Also, the loss of per capita US manufacturing has been declining since the 1940s, with US trade deficits beginning only in the 1970s. Meanwhile, as US manufacturing has declined, US employment has increased as has worker productivity."
Unions have been crying about the loss of US jobs to foreign countries for most of that time. You don't remember those "Made in the USA" signs that have become antiques now because nothing is made here anymore?
The steady loss of manufacturing jobs since the 40s is significant to lower-middle class and working class laborers, and has been for years. It has long been true that certain segments of the economy don't perform as well as others, and except for short periods (the Internet bubble being one) lower class workers have traditionally had a rough time.
Why doesn't this report look at real wages adjusted for inflation over this period?
It should also be noted that the ag trade surplus shrunk steadily for years and has disappeared. We no run an ag trade gap.
The question, though, is his sustainable are trade gaps? Now that we've essentially outsourced our working class to Asia and Central America, how long can we keep "prospering"?
I reckon we'll know when US prosperity has evaporated when people stop immigrating here and instead start emigrating.
Post a Comment