Gongol.com Archives: March 2017

Brian Gongol


March 20, 2017

Business and Finance Manufacturing output is high -- it's manufacturing employment that's declined

If you don't get the diagnosis right, you risk issuing a deadly prescription. The problem isn't us getting screwed at the trade-negotiation table. It's that technology (mostly) and trade (to a lesser extent) render lots of jobs obsolete or redundant. We can lie to ourselves and pretend like we can stop the shift by barricading ourselves off against trade, but that's just dumb policy that assumes the wrong diagnosis and guarantees the application of really awful prescriptions that will make the situation worse. Ham-handed trade policies that focus on "protecting" primary industries (that is, ones that are very close to the step when raw materials are turned into something basic) can punish American companies that have moved up the value chain. Trade principle #1: If you want to protect anything, focus on intellectual property. Punish theft of trademarks, patents, and trade dress. Trade principle #2: Follow quality-based purchasing guidelines. Americans build great products - use rules-based standards for quality. Trade principle #3: Help workers displaced by trade and/or technology to move up the value chain with flexible, adaptive training programs.

Business and Finance The skyscraper curse

At the time when a Korean conglomerate is opening its 123-story Lotte World Tower, the company is finding itself in the midst of troubles of geopolitical economy and domestic law enforcement. The Korean economic miracle is a fascinating subject for study, but it's hard to shake the notion that the country is paying today for some of the economic vulnerabilities it accepted as part of the structure of its semi-managed economy. The government's strong hand in seeking to guide development (through favoritism and certain protectionist policies) created a class of businesses that are unusually susceptible to trouble when exposed to the wrong uncertainties.

Business and Finance Don't look for manufacturing jobs to "come back"

The jobs that have disappeared from the US market aren't likely to "come back" for any reason, especially not since many of them have departed not due to trade but to increased productivity (especially thanks to automation). What we should be seeking to do is create new jobs that are enhanced by automation and trade -- in other words, to adopt an expansive vision of the economy and employment, rather than an isolationist one.

News "Our mandate is clear, it is to get on with it"

UK will start the formal process of leaving the EU on March 29th. The full divorce is expected to take two years.

News Co-locating libraries with public housing

Chicago is going to build three such facilities. It's a novel idea, and we should hope that the execution lives up to the lofty ambition. An idea like this seems so good and logical that one could be forgiven for looking for the "catch".

Computers and the Internet Solid-state drive so fast it can be storage or RAM

To anyone who grew up with floppy disks (or even cassette drives), this kind of progress is remarkable


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