There was an article in The Economist last week, shared widely in press around the globe, about the apparent fixation with manufacturing. Aussie economist Saul Eslake calls it Manufacturing Fetishism, with government support focused more on that sector than anything else. President Trump wants to bring home everything from steelmaking to drug production and is putting up tariff barriers to do so. Britain is considering subsidising manufacturers’ energy bills; Narendra Modi, India’s prime minister, is offering incentives for electric-vehicle-makers. But of everyone subsidises the same products, does anyone come out ahead? And isn’t the manufacturing focus based on the simple notion that they are better paying jobs than hospitality and retail?
Steve thinks manufacturing is important for a while variety of reasons, including building the skillset to make economies more self-sufficient. That requires well-funded education, which is not one of the central pillars for Trump’s strategy of bringing jobs back home. Perhaps he hasn’t thought it through enough.
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