Archive for March, 2012
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Economics vs. The Economy – How To Win The War Against US Manufacturing

Surely you’ve heard the war drums.

In the past year – since Obama & the gubmint have seemed to get manufacturing religion – the din between two distinct camps has been rising slowly toward what could become a classic battle of ideologies.

I was just writing a post in response to Do Manufacturers Need Special Treatment? – an article from Christina Romer that ran in the NY Times, claiming that US manufacturing doesn’t need tax breaks or special considerations. Let the invisible hand and free markets handle it, she said. It is, I believe, the watershed moment of the most recent skirmish in this long war on US manufacturing that began with Hamilton and Adams when our nation was founded. Economy vs. economics. Doers vs. takers.

But I was beaten to the punch, and I’m damned glad I was. Clyde Prestowitz is a former Reagan White House adviser & as pragmatic a cat as you’ll find. Clyde understands not only economics, but the ECONOMY too – that is, what generates the beans that economists have the luxury to count. Clyde dropped two articles this morning that succinctly & thoroughly define the sides of this imminent confrontation about manufacturing in the US, and I defer to him on this matter. Simply put, Clyde rocks.

But I have something to add if you don’t mind, Clyde.

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