Thursday , February 27 2020
Home / S. Sumner: Money Illusion / Is China becoming a nation of hamburger flippers?

Is China becoming a nation of hamburger flippers?

Summary:
Here’s Bloomberg: Ma computes that between 2014 and 2018, China lost 17 million industrial jobs while adding 46 million service jobs. Some 13.52 million jobs were created last year. When this happened in the US we were told that it was a disaster.  Will the decline in industrial jobs create a meth epidemic in China?  Does China need to launch a trade war to get those industrial jobs back? Of course I’m being sarcastic, but this is one more data point indicating that the “real problem” (if it is a problem) is automation, not trade. Over at The Hill I have a new column explaining why Trump lost the trade war with China.  The basic problem was that the US didn’t have any important demands that were both coherent and achievable.  If you go into negotiations not knowing exactly

Topics:
Scott Sumner considers the following as important:

This could be interesting, too:

Scott Sumner writes Interest rate cuts may not be enough

Scott Sumner writes Demand vs. aggregate demand

Scott Sumner writes A question for cold warriors

Scott Sumner writes Interview with Erik Torenberg

Here’s Bloomberg:

Ma computes that between 2014 and 2018, China lost 17 million industrial jobs while adding 46 million service jobs. Some 13.52 million jobs were created last year.

When this happened in the US we were told that it was a disaster.  Will the decline in industrial jobs create a meth epidemic in China?  Does China need to launch a trade war to get those industrial jobs back?

Of course I’m being sarcastic, but this is one more data point indicating that the “real problem” (if it is a problem) is automation, not trade.

Over at The Hill I have a new column explaining why Trump lost the trade war with China.  The basic problem was that the US didn’t have any important demands that were both coherent and achievable.  If you go into negotiations not knowing exactly what you are trying to achieve, it’s pretty hard to come out ahead.  Trump was smart to cut his losses and agree to a meaningless “phase one” deal.


Tags:

 
 
 
Scott Sumner
Scott B. Sumner is Research Fellow at the Independent Institute, the Director of the Program on Monetary Policy at the Mercatus Center at George Mason University and an economist who teaches at Bentley University in Waltham, Massachusetts. His economics blog, The Money Illusion, popularized the idea of nominal GDP targeting, which says that the Fed should target nominal GDP—i.e., real GDP growth plus the rate of inflation—to better "induce the correct level of business investment".

Leave a Reply

Your email address will not be published. Required fields are marked *