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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