November 21, 2005
Does Manufacturing Matter?
Menzie Chinn says that it does. When the U.S. current account deficit shrinks, it will have to shrink accompanied by an increase in manufacturing employment, because manufactures are the easiest goods to export and also are substitutes for imports. Manufacturing employment has gotten hammered to an unbelievable degree in the Bush era:
Posted by DeLong at November 21, 2005 08:08 PM