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January 28, 2010

Comments

Giles Wilkes

Hear hear. Why should people obsess on products that you can pick up, trade, physically handle? it is nonsense.

Manufacturing fell far harder than services in this recession; it only failed to contribute towards the recession as much, because it's so small.

http://www.statistics.gov.uk/pdfdir/qna1209.pdf annex 1

Thank goodness we didn't have a larger manufacturing base . . .

In fact, it is even a myth that Britain for so long rested on manufacturing. In the C19, we needed invisibles and foreign income to keep the books balanced.

Alex

It is a fetish. It's a fetish that I find inexplicable, because if we really wanted more manufacturing, then I would've thought the market would be there for it. But it's obviously not.

(How come you only posted one of the two graphs?)

Anyway, what if you remove Iceland, Norway and Korea as anomalies, then you would get a reasonably strong negative correlation?

Tony Woolf

"If people just did what they are best at doing, a healthy economy should emerge - shouldn't it?"
And all would be for the best in the best of all possible worlds. Looks more like faith than reason to me.

Econoclast

I would like to agree with your statement at the end of your piece. But you know as well as I do, that this isn't the case because there isn't a level playing field. Manufacturing companies that trade in world markets have been allowed to fail, sometimes with devastating consequences for the regions in which they are based. Over the last few years, the financial system has been bailed out at massive cost to the taxpayer. The government has effected a transfer from manufacturing to banking, from north to south, from poor to rich (by propping up inflated asset markets). This simply encourages over-capacity in finance. I think we all know now that isn't good for the economy.

Tim Worstall

Thanks for that Chris. Puts that issue to rest in my mind at least.

Alex

Giles: causality. Manufactured goods are fundamentally the most tradable of products, therefore major manufacturing economies are usually also big traders, therefore if some fool blows up the financial system to the extent that you can't get letters of trade credit any more, they've got a problem.

pandora charms

Manufacturing companies that trade in world markets have been allowed to fail, sometimes with devastating consequences for the regions in which they are based.
http://www.shoptraveljackets.com/
http://www.tf-mart.com/
http://www.thomassabosales.com/

godswmobile

This simply encourages over-capacity in finance. I think we all know now that isn't good for the economy.

orjin krem

"If people just did what they are best at doing, a healthy economy should emerge - shouldn't it?"
And all would be for the best in the best of all possible worlds. Looks more like faith than reason to me.

orjin krem

This simply encourages over-capacity in finance. I think we all know now that isn't good for the economy.


orjin krem

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youthair

Bu sadece finans kapasiteli teşvik eder. Ben tüm bu ekonomi için iyi değildir artık biliyoruz düşünüyorum

Dermojin Polen

This simply encourages over-capacity in finance. I think we all know now that isn't good for the economy.

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