Bastille Day - Laramie Hirsch first posted this on his own site, but has agreed to post here at MOTW, as well. This week’s Bastille Day in Paris featured a man flying...
9 hours ago
The lesson from Findlay is that there are no short-cut solutions to the anger of blue-collar workers. Findlay’s tyre-builders have had the direct attention of a president and international tariffs signed on their behalf. Still they feel—passionately—that the economy is stacked against them, and want larger changes to capitalism than mainstream politicians can deliver. What then?
This means countries are running out of industrialization opportunities sooner and at much lower levels of income compared to the experience of early industrializers. Asian countries and manufactures exporters have been largely insulated from those trends, while Latin American countries have been especially hard hit. Advanced economies have lost considerable employment (especially of the low-skill type), but they have done surprisingly well in terms of manufacturing output shares at constant prices. While these trends are not very recent, the evidence suggests both globalization and labor-saving technological progress in manufacturing have been behind these developments. Premature deindustrialization has potentially significant economic and political ramifications, including lower economic growth and democratic failure.Putting aside the stronger arguments against free trade, which show basic concepts such as comparative advantage are flawed, the social, political and cultural impact of deindustrialization can't be ignored. Even Little Marco understood this better than most, because he did talk about the need to deal with changes in the economy. A lot of these jobs are never coming back. When the manufacturing jobs left America they went to a guy in China or Mexico, but when it comes back to America, it will go to a robot. Computer programmers, engineers and mechanics will run the factories. The economy will grow faster and create more jobs, but the problems facing blue collar workers won't go away.
Rand Paul, on the other hand, treated voters as if they were intelligent creatures who make decisions based on the facts. His campaign didn’t last long with that message. Rand Paul knows about a lot of stuff. He’s a smart guy. But apparently psychology is not on the list of things he knows. And psychology is the only necessary skill for running for president.Read it through to the end.
Trump knows psychology. He knows facts don’t matter. He knows people are irrational. So while his opponents are losing sleep trying to memorize the names of foreign leaders – in case someone asks – Trump knows that is a waste of time. No one ever voted for a president based on his or her ability to name heads of state. People vote based on emotion. Period.