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284 sats \ 2 replies \ @SimpleStacker 13h \ on: Trump’s ‘Broken Windows’ Economy econ
The broken windows fallacy certain does apply to Trump's logic of raising tariffs to "bring manufacturing jobs back to America", because what that logic misses is that by having China do the manufacturing, that frees Americans up to do other, potentially more desirable jobs.
That being said, the broken windows argument isn't going to be convincing to people who are having trouble adapting to this new economy. It should also be said that a knowledge-oriented economy may be more cutthroat and "winner-takes-all" than a manufacturing-based one, because one person can more easily service millions of people with their knowledge production (this includes music and entertainment as well), than one factory worker can service millions of people with their factory work.
The consequences of the loss of manufacturing work and the transition to a more knowledge-oriented economy has resulted in degraded lives and loss of dignity for a lot of people, which is a big reason why Trump gained popularity by speaking into their problems.
I'll add to this that a lot of the "knowledge based economy" is potentially welfare-reducing make-work, whereas manufacturing is more likely to be a net positive overall because you're actually making stuff that people can use. But certain roles like government regulators and the associated compliance officers, lawyers, accountants, etc, are jobs that aren't necessarily value-enhancing, but only exist because of the complex maze of bureaucratic rules that have sprung up due to excessive regulation.
It's kinda like saying the economy is growing because we're employing a lot more garbagemen. More garbagemen isn't a sign of good economic health: it's just a sign of more waste. So more accountants, lawyers, and compliance officers isn't a sign of economic health, it's just a sign of more value-destroying burdensome regulations.
Another, much more salient example, is the growing spending on healthcare. Growing spending on healthcare isn't necessarily a sign of economic growth, if it means a population is getting sicker and/or spending more on wasteful treatments.
I’ve never lumped all those professions together in one garbage men category. It’s a great point.
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New talking point just dropped!
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