Post by RS Davis on Mar 15, 2004 4:28:02 GMT -5
[glow=red,2,300]Mark Thornton Wrote:[/glow]Why are people complaining about unemployment? Everyone seems to be worried about jobs, especially now that the political campaign season has begun. Alan Greenspan has assured us that he can see new jobs right around the corner. The White House has proclaimed that 2.5 million jobs will soon be created. Is there reason to be so concerned about unemployment?
Unemployment is certainly a serious issue, but most complainers completely miss the mark in terms of the causes and cures of unemployment. For example, should Americans be worried that telephone-answering jobs are being shipped overseas? No. Those telephone-answering jobs (think 1-800-technical assistance) are not great jobs to begin with and they are going to be increasingly phased out via automation. The President’s chief economist, Greg Mankiw is correct – outsourcing is good for the American economy.
Should we worry that the number of manufacturing jobs is plummeting? Three million manufacturing jobs have been lost in the last four years and the level of manufacturing employment is at its lowest level in over 50 years. The rapid loss of manufacturing jobs has many causes (its not free trade), but we must also remember that most Americans no longer aspire to get a manufacturing job. Furthermore, these jobs will continue to lose out to automation and foreign competition.
Yet, every night Lou Dobbs drones on CNN about "broken borders" and the outsourcing of American jobs to help drive up his show’s ratings enough to save his own job. The Democratic presidential candidate complains about the lack of good-paying jobs for Americans while the Republican candidate takes credit for new job creation and hopes that more will be created. Neither knows anything about finding work or creating jobs. Protectionism, fair trade, government education and retraining, and tax breaks will only make the job market conditions worse.
Unemployment is certainly a serious issue, but most complainers completely miss the mark in terms of the causes and cures of unemployment. For example, should Americans be worried that telephone-answering jobs are being shipped overseas? No. Those telephone-answering jobs (think 1-800-technical assistance) are not great jobs to begin with and they are going to be increasingly phased out via automation. The President’s chief economist, Greg Mankiw is correct – outsourcing is good for the American economy.
Should we worry that the number of manufacturing jobs is plummeting? Three million manufacturing jobs have been lost in the last four years and the level of manufacturing employment is at its lowest level in over 50 years. The rapid loss of manufacturing jobs has many causes (its not free trade), but we must also remember that most Americans no longer aspire to get a manufacturing job. Furthermore, these jobs will continue to lose out to automation and foreign competition.
Yet, every night Lou Dobbs drones on CNN about "broken borders" and the outsourcing of American jobs to help drive up his show’s ratings enough to save his own job. The Democratic presidential candidate complains about the lack of good-paying jobs for Americans while the Republican candidate takes credit for new job creation and hopes that more will be created. Neither knows anything about finding work or creating jobs. Protectionism, fair trade, government education and retraining, and tax breaks will only make the job market conditions worse.
- Rick
Check out Mark Thornton's books, Tariffs, Blockades, and Inflation: The Economics of the Civil War
and The Economics of Prohibition.
