Economic Upturn

Here is an interesting take on the "upturn in the economy" by columnist Paul Craig Roberts. He points out that in the recent unemployment report "All of the new jobs are in services. None of the new service jobs are capable of producing export earnings to bring balance to our massive trade deficit."

I agree wholeheartedly with what he is saying. Service jobs do not "create" any new money they only recycle the money already out there. Resource based industries, like mining, forestry, and agriculture, create money in an economy. Further industrial and manufacturing capacity add value to the Resource industries. Our continued loses in Resource based industries and manufacturing capabilities are only going to hurt us in the long run.

The only place I disagree with Mr. Roberts is that he places all the blame for this problem on President Bush. People have been complaining about the loss of manufacturing capacity for it seems like 40 years and that encompasses many different administrations. I know the man in charge is always the one ultimately responsible for what happens but it seems to me like whether it is Republicans or Democrats the problem stays the same and never changes.

Economics is extremely useful as a form of employment for economists.
John Kenneth Galbraith