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42 sats \ 2 replies \ @Undisciplined 11h \ parent \ on: Does the US have Dutch disease? econ
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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42 sats \ 1 reply \ @Aardvark 11h
If that were the case, then I don't think we would be in a trade deficit and certainly not for decades.
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42 sats \ 0 replies \ @Undisciplined 11h
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.
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