I guess we have to conclude that some politicians really are irredeemably dim

\”We know manufacturing produces good jobs, high-paying jobs,\” House Majority Leader Steny H. Hoyer (D-Md.) said this week as Democrats released a report showcasing small gains in manufacturing since Obama took office.

Err, no we don\’t actually.

We know that jobs with high labour productivity produce high pay.

We also know that certain manufacturing processes have high labour productivity.

Just as we also know that certain service processes have high labour productivity.

We also know that certain manufacturing processes have low labour productivity: textiles being an obvious example. Just as we also know that certain service sector processes have low labour productivity: burger slinging perhaps.

What produces the high pay is the high productivity, not whether that productivity is in manufacturing or services.

Just as an example, does anyone think that bringing the Bangladeshi Nike factories to the US is going to result in high paying jobs in the US? Or moving Foxxconn\’s 800,000 assembly jobs currently paying $300 a month to the US will?

Yes, quite.

3 thoughts on “I guess we have to conclude that some politicians really are irredeemably dim”

  1. “Or moving Foxxconn’s 800,000 assembly jobs currently paying $300 a month to the US will?”

    Some low paying jobs would be far more important than high paying ones — any jobs for the matter would be great. We not only have winners in the US (or the UK) but many more people who need menial employment that organises their day (and life).

    China only can offer the prices they do because of the exchange rate and other cheats — but in the end, there are 800000 jobs that feed 800000 people, and those jobs are in China and not over here, all we have here is 800k welfare claimants and a minimum wage that is beefed up to existence minimum with tax credits.

    It’s not that Chinese people actually earn less in terms of buying power than anyone who takes a job at that kind of level here — in fact, they probably make more (after all is taxed and paid) than people here have available after taxcredits are added at the bottom tier of income.

  2. “What produces the high pay is the high productivity”

    Or, of course, credentialism and restrictions on entry. See under lawyers, doctors, etc etc.

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