Gotta love it!
From the BBC this morning:
"Economist caught in US jobs storm
Mr Bush wants to defuse public anger over jobs
A top White House economic adviser has issued what amounts to a public apology after appearing to praise the movement of US jobs overseas.
Gregory Mankiw, the president's chief economic adviser, said outsourcing of jobs was "probably a plus for the economy in the long run".
Where do they find these people?
Regards,
Marv
At Princeton, Harvard, and MIT. He's sold over a million economics textbooks.
Here's the short story: Did you happen to read my article, "The China Conundrum"? If so, you noted that I listed a hierarchy of economic interests in trade. Mankiw is in the top tier -- those who are interested only in the economy as a whole. That is to say, only interested in GNP. His line about jobs is right out of the conservative economics playbook, as written by Hayek, Friedman, et al.
His mistake here was saying it in public. The fact is, what he said is right in line with this administration's economic philosophy. To understand how it's supposed to benefit the US, you have to read the whole story. There's one chapter in Milton Friedman's _Free to Choose_ that lays it out simply and clearly. I forget the chapter name.
Unfortunately for them, this philosophy runs into problems in an election year. So now he has to pretend he didn't mean it. But he did.
Ed Huntress
From the classical Economist's standpoint he is probably right though you can't sell it to someonw who has been laid off two years ago and saw his entire company move to Macau.
More fun and games in this election year!
BTW - the BBC website is great - much good stuff (and Blair bashing) there. Worth a look.
Regards,
Marv
Ed Huntress wrote:
Yeah, that's good advice. I try to go there every day.
Ed Huntress
Mankiw and his predecessor Larry Lindsey are both dogmatic conservative supply side economists. They work in theory only and not in the real world. That is s sure fire recipe for the activation of another theory. The one about unintended consequences that they seem to have forgotten about. He apologized because it is an election year. Not because he didn't mean it.
Even more laughable is the prediction of adding 2.6 million more jobs this year. They made the same prediction last year and were off negative 115%.
This CNN /Lou Dobbs interview with James Glassman from the American Enterprise Institute was very interesting:
Spehro Pefhany
I saw that. It brought back memories of those tobacco execs swearing before congress that they don't believe that cigarettes are adictive. This guy just could not admit to reality.
Yep, a lot of which they make up. They also take every opportunity to bash America. I can do without that trash. Got their asses cought recently and a whole passel of them quit. Good riddance. Greg Sefton
Probably somewhat optimistic but looking at all the jobs, even Greenspan says it's doable. Of course the dems don't want American to get jobs this year :o). Greg Sefton
Yep. Do folks really care that the prez lied about WMDs?
No.
Do they really care that GWB was a draft dodger?
No.
Do they really care that he's presided over the biggest trashing of civil rights in a *long* time?
No.
But just exactly how do the feel if they've been out of work and can't make their car/house payments, and oil and gas prices keep on going up and up?
Pretty angry no doubt. As long as GWB keeps the sleight of hand running to confuse the issues, there's no fallout. But when somebody comes right out and says it:
"yep, we're sending your jobs to china, and that's exactly what we wanted to do, it's good for us, too bad for you"
then it's a lot harder to hide behind the prestidigitation.
Jim
================================================== please reply to: JRR(zero) at yktvmv (dot) vnet (dot) ibm (dot) com ==================================================
The sad thing is that GWB did not have anything to do with sending the jobs overseas. Who signed NAFTA? Who supported NAFTA? And some American made and shipped every one of those bombs that was dropped on Iraq. Americans made the other military equipment used as well.
Ah, well, the fuses for those bombs were made in Germany. Most of the electronic components were made in Asia. And so on.
They were sort of an international event.
Ed Huntress
Right, but it's the Republican-controlled congress that has a mandate from the president and his economic advisors, to see to it that the dems get their wish come true!
Jim
================================================== please reply to: JRR(zero) at yktvmv (dot) vnet (dot) ibm (dot) com ==================================================
The article in the NY times today, in the business section, used the word 'confounded.'
IOW the economic forecasters were "confounded" that the jobs they predicted to arrive, simply did not.
I think the voters are also going to be using that word soon, "that confounded incumbent."
Jim
================================================== please reply to: JRR(zero) at yktvmv (dot) vnet (dot) ibm (dot) com ==================================================
Reminds me of the relationship between Krupp and the British armaments manufacturers in WWI. Every shell the Brits fired with a proximity fuze in it had a royalty directly payable to Krupp Essen. And they paid and Krupp collected.
See further cites in "Arms of Krupp" by Manchester.
Regards,
Marv
Ed Huntress wrote:
Maybe you should try some decaf Jim :o). Greg
Well there's that too. I think this election really will be one that polarizes folks, gets them out to vote. There's already scuffling (the NY times had a huge page with a pretty even coverage of the Kerry/Fonda photo, and the "Where's George?" issue of his national guard non-event.
Having an economic advisor come out and blurt out what he did, is going to cause some major red faces, and probably his own pink slip. That's *such* a senstive issue right now, I think it may be the single one that decides the election.
Jim
================================================== please reply to: JRR(zero) at yktvmv (dot) vnet (dot) ibm (dot) com ==================================================
maybe you should try some dealing with reality, Greg
Dale
The problem with this 'one earth' stuff - dump 'our' jobs and ship them overseas trash our kids with the cheap labor from the southern neighbors -
I guess they in the perfect mind place don't see what they are doing.
I don't think they consider anyone that isn't a doctor, engineer, politiction, live_on_relief'er, etc. THey forget not every moma's child is a rocket scientist.
ANd if everything is made overseas - what happens when China gets mad at us and shuts down the boarder.
THey already lieved taxes on exports.
Here we go - anyone remember how to do : ......
Martin
Since they know he didnt:
Since they know he wasnt:
Since its not:
Its all his fault? No
You didnt have any problem when Clinton sent those jobs overseas. How come?
Gunner
"To be civilized is to restrain the ability to commit mayhem. To be incapable of committing mayhem is not the mark of the civilized, merely the domesticated." - Trefor Thomas
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