Dear Mr Weisbrot

If you\’re going to write columns on economics could you please make sure that you understand the economic processes you are writing about?

And it is interesting to see them getting some attention, after the media ignored, for example, the fact that an overvalued dollar was the main cause of the United States\’s loss of nearly a third of its manufacturing jobs over the last decade.

No, the major cause of lost manufacturing jobs in the US has been increasing productivity: the same thing that has seen US manufacturing output continue to rise for 60 years while employing ever fewer people.

yours etc.

Tim Worstall

2 thoughts on “Dear Mr Weisbrot”

  1. Movement of manufacturing jobs to China and Mexico etc, has happened too. Not because of the strength of the dollar, but because Mexican and Chinese etc, workers will do the same work as an American one in exchange for a much lower Standard of living.

  2. Marksany: I don’t think your comment disagrees with Tim’s point the way you think it does. Trade is one of the primary methods by which we might raise productivity.

    Productivity is good, and reducing the number of people who have to waste their time making cell phones – while simultaneously increasing the number of phones we get – makes us richer as a society, because now we get the phones AND something else.

    What’s happening in China is rather beside the point. We don’t really care how they make the phones, or why they’ve agreed to make them, or where they make them, or who makes them. Perhaps they agreed for exactly the reasons you state, but really…what’s that to US?

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