EconTalk Ed Leamer on Manufacturing, Effort, and Inequality
Apr 13, 2020
Ed Leamer, a UCLA economist, discusses the profound effects of work effort on inequality and the historical decline of manufacturing jobs on middle-class stability. He explores the widening income gap between high- and low-skilled workers and the implications of technology on job markets. Leamer argues for a reshaped education system that fosters personal exploration and mentorship. Additionally, he examines ethical concerns in academia and advocates for experiential learning to better equip students for a tech-driven economy.
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Manufacturing's Role in Democracy
- Manufacturing jobs were crucial for the middle class and democracy.
- These jobs have declined since the 1960s, impacting high school graduates' prospects.
Capital Cost and Effort
- Workers operating expensive capital must work intensely to recover costs.
- This contrasts with low-capital jobs like picking strawberries, offering flexibility.
Team Production vs. Individual Work
- Assembly lines require teamwork and synchronized effort, unlike individual tasks.
- This team production model contrasts with independent work like writing.