Does the US have Dutch disease? \ stacker news ~econ

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Does the US have Dutch disease?www.ft.com/content/95a77bb1-10c5-4dbc-ad8c-213c17131332

314 sats \ 15 comments \ @Coinsreporter 4h econ

Dutch disease is a concept that describes an economic phenomenon where the rapid development of one sector of the economy (particularly natural resources) precipitates a decline in other sectors. It is also often characterized by a substantial appreciation of the domestic currency.

@Undisciplined and @SimpleStacker your views on the possibility of US ailing with the Dutch Disease?

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20 sats \ 10 replies \ @Undisciplined 4h

That seems like a very strange claim for the most diverse economy in the world. To be fair, though, I didn't read the article.

62 sats \ 8 replies \ @SimpleStacker 4h

Here's the point:

The US has Dutch disease. Its export is the dollar

42 sats \ 6 replies \ @Coinsreporter OP 4h

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.

42 sats \ 5 replies \ @Aardvark 3h

Exporting the dollar has definitely impacted manufacturing in this country. It's the driving force behind the trade deficit, so I suppose it fits the description. Manufacturing has been taking a beating since the 80s

42 sats \ 4 replies \ @Undisciplined 3h

Manufacturing jobs have taken a beating. There's still a lot of manufacturing in the US.

42 sats \ 3 replies \ @Aardvark 3h

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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21 sats \ 0 replies \ @Undisciplined 4h

I suppose Dutch Disease is more of a continuum than a binary.

My sense is that we wouldn't be able to maintain the reserve currency of the world if our economy stopped being the biggest one that everyone else wants to invest those dollars in.

0 sats \ 0 replies \ @Coinsreporter OP 4h

Just read the initial few paragraphs. I didn't bring them here because I wanted you to read the claims by FT in detail.

20 sats \ 1 reply \ @siggy47 2h

I thought you were talking about this, of which we have plenty:

https://en.wikipedia.org/wiki/Dutch_elm_disease

36 sats \ 0 replies \ @Coinsreporter OP 2h

Haha! FT created this clickbait deliberately.

20 sats \ 1 reply \ @optimism 3h

Archived link: https://archive.is/WQyjX

0 sats \ 0 replies \ @Coinsreporter OP 3h

Thanks. It was not Paywalled for me when I shared, but now it is. Strange from FT!