Friday, October 28, 2016

Is De-industrialization a "Natural Phenomenon" of Developed Economies?



[This article is re-printed from the "International Debate on Re-Industrialization" published in the March 2015 issue of TSEconomist.]

Let me first state my position and then add a few arguments to back it up. Economic growth typically entails a re-allocation of labor away from industrial production, but it does not all by itself lead to falling industrial output. The decline of industrial production in the US and France in the past thirty years is to some extent due to capital exports, but especially to government interventionism in the form of mushrooming labor, business and financial regulations, education policies, social security funding, and taxation. This decline cannot be stopped through more interventions, even if they are designed with the good intention to reindustrialize the country.

Now let me offer a few considerations in support of these contentions......To Read More....

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