Tuesday, January 25, 2011

Protectionist Questions

I read an old column by Prof. Boudreaux today that is worth posting. I am sure there is going to be something in the SOTUS address tonight where this will be valuable knowledge.

Ask the protectionist.

I especially like the following:

Many of you protectionists hyperventilate about America's alleged loss of manufacturing prowess. Are you aware that your worries on this front arise solely because you confuse manufacturing jobs with manufacturing output? Manufacturing jobs, as a percentage of all jobs in America, are indeed declining. And you hysterically interpret this fact as somehow proving that foreign producers are undermining America's economy.

But are you aware that America's manufacturing output today is near its all-time high? Are you aware also that America is by far the world's largest exporter of manufactured goods?

Are you aware that the reason manufacturing jobs are declining as a share of all jobs has far more to do with increased productivity of American industry -- that is, increased strength of American industry -- than it has to do with increased foreign trade? Manufacturing jobs are being lost to technology and improved efficiencies. Do you think that this trend is undesirable?


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