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42 sats \ 6 replies \ @Coinsreporter OP 6h \ parent \ on: Does the US have Dutch disease? econ
Yes, that's the point. Does it mean that other sectors of US economy are in a free fall?
I assume that they aren't in a free fall, but they aren't booming either. For decades now, only the US dollar is working as a shield for the US economy.
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Manufacturing jobs have taken a beating. There's still a lot of manufacturing in the US.
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Well, there were like 19 to 20 million manufacturering jobs in 1980 compared to 12 million now. Also, for every manufacturing jobs created, roughly 2.2 jobs are supported.
I'm not sure what actually counts as Dutch disease, but there's a major sector in this country that's obviously suffering.
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The amount of stuff manufactured kept growing though. That could just be the normal course of technological progress, like how we produce more agriculture than ever despite a 90%+ reduction in farmers.
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There certainly might be a relationship between those things, but I'm not sure there has to be.
I think it's more that exporting dollars causes a trade deficit and poor countries subsidize their export manufacturing industries. Since they rely on labor intensive manufacturing, America is left specializing in high-tech processes.