The first is that there is an in-built tendency for manufacturing to be weak and the City to be strong.
It\’s called the international division of labour.
There have been two great outbreaks of this international division of labour. In the 1880-1914 ish times and 1980 to today.
Both times we found that Germany specialised in heavy industry, especially the manufacture of capital goods. The UK specialised in international finance.
OK then, we\’re just seeing the playing out of the comparative advantages of the two economies.
What I don\’t understand is why he\’s complaining about it.
Perhaps he\’s like to go back to the sources? Perhaps he could tell us why Adam Smith was wrong about wealth coming from the division and specialisation of labour and the associated trade, why David Ricardo was wrong about how comparative advantage adds to this process?