VitalAccurateThinking

Atlanta Journalist Needs Economic Education

I cannot even count the amount of Lou Dobbs-inspired idiocy found in this Atlanta Journal Constitution opinion article. Here is just a taste:

Indeed, farsighted economists have argued that the decline of the nation's manufacturing base poses a greater threat to America than Islamic jihadists do.

Who? Name a reputable economist who does not recognize the changing nature of wealth generation from manufacturing to services.

Meanwhile, a more insidious force -— globalization -— has eaten away at our economic infrastructure. For 30 years now, global competition has been quietly gaining on us, melting the broad base that lifted so many Americans into the middle class. Steel mills are shuttered; textile plants have disappeared; domestic automakers are in their death throes.

Those lost jobs have not been replaced by work that pays as well or that grants health insurance and pensions. The unemployment rate -— a low 4.4 percent -— doesn't account for the fact that many of those jobs are at Wal-Mart and McDonald's.

This is just erroneous. The creative destruction has resulted in new industries, high paying jobs, higher average wages and a vast increase in wealth.

First off, they'd start rolling out government-paid health insurance for every American. The high cost of health insurance is a huge burden for American companies -— a cost that many overseas competitors don't bear.

Where does Ms. Tucker think the money would come from for this massive health plan? This argument is just plain silly.

Second, they'd start a heavily funded national program for energy independence, similar to the space race that followed the Soviets' Sputnik launch. Not only would such a program jump-start science education, but it would also spark entire new industries. It might even lead us to a new, more stable prosperity that doesn't depend on the whims of Middle Eastern tyrants.

At least this idea is one I have proposed in the past and agree with. I guess blind squirrels do find chestnuts from time to time.

posted by Jim VAT @ 8:58 PM