Re: MANUFACTURING EMPLOYMENT DROPS TO 1962 LOWS!!!!

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Article #1880

#1880

From: Peter Lawrence
Date: Tue, 27 Aug 2002 12:20

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Jim Blair wrote:
.
.
.
> I see it this way: those with less skill and less education are losing out
> to those with more education or greater skills.

Unfortunately this doesn't actually tell us that more skills etc. will help - 
because it doesn't distinguish between tendencies to increase product and 
tendencies to poach jobs. The issue is discussed at http://www.faxfn.org. In 
fact, it is quite easy to describe a self consistent scenario which is 
consistent with the above, in which the search for skills means less product; 
it's when people go into training etc. and divert resources into it that only 
match their MARGINAL gains but not the absolute increase in GDP (if any). The 
losses show as an externality.

So that raises the question, how can we tell which case applies? PML.

-- 
GST+NPT=JOBS

I.e., a Goods and Services Tax (or almost any other broad based production 
tax), with a Negative Payroll Tax, promotes employment. 

See http://users.netlink.com.au/~peterl/publicns.html#AFRLET2 and the other 
items on that page for some reasons why.

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Subject: Re: MANUFACTURING EMPLOYMENT DROPS TO 1962 LOWS!!!!
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