Sunday, October 30, 2011

Week 8: Wednesday Blog Post

Trade, Technology and the Job Market:
  • The “U.S.” is importing more GOODS than it is exporting…this has sharpened.
    • Has led to a serious trade deficit
  • How to increase wealth:
    • Give property rights
    • Get more people in an economy to work
    •  Use resources more efficiently
  •  In the present day, service sector jobs are higher paid than manufacturing jobs.
  •  Technology is advancing faster today than ever before 
    •  Past: Democratic technological change. Suited everyone in basic functions.
    • Today: Make specific people technologically savvy. This proves to be an advantage to people with unique skills.
    • •Nobody predicted technological advances of modern day
    •  Likewise, we do not know what kind of advancements/jobs there will be over the next decade
  •  Trade indeed does make us richer.
    •  Trade although good, increases risks.
    •  However, trade also increases opportunities – opportunities in terms of jobs etc.
    • Trade does NOT lead to overall unemployment 
    •  Jobs are a cost, not a benefit – Jobs are a mean to the end.
  • Exports – Imports → “Trade Balance”
    • “Trade Balance” – Goods/Services.
    •  Positive exports/imports – Positive trade balance.
    •  Negative exports/imports – Negative trade balance

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