May 11, 2014

THERE IS NO MAN IN MANUFACTURING:

If US Manufacturing Hasn't Declined Then We Don't Have To Explain The Decline Of US Manufacturing (Tim Worstall, 5/11/14, Forbes)

It is absolutely true that manufacturing as a percentage of the US economy has fallen. But that's not because manufacturing itself has shrunk, that's because other parts of the economy, most obviously services, have grown faster than manufacturing. It is also true that manufacturing employment has dropped precipitately. But to decry that while production is still rising is to be most foolish. For having rising output combined with falling employment is generally regarded as a good thing. Labour, workers, are a cost of making something. An input into the system. And if we get more out of the system while putting fewer resources into it then this means that our system is becoming more productive. And another name for the system becoming more productive is that we're all getting richer. For whatever limited resources we have available to us we're getting more things that people can drop on their feet: we're getting richer.

All we have to do is determine how we're going to redistribute the riches now that we don't use jobs anymore.
Posted by at May 11, 2014 12:51 PM
  
blog comments powered by Disqus
« FIRST WAY MEANS (FREEDOM), SECOND WAY ENDS (SECURITY): | Main | OUR REPUBLICAN PRESIDENT: »