Now is that time of year when thousands of high school and college students across the world, from Fairfax to Frankfurt, will be taking their very first economics course. Perhaps it will be a basic, high school introductory economics’ course, or perhaps an even more challenging AP or IB economics’ course. Or perhaps you are a freshman or sophomore in college taking an introductory macroeconomics or microeconomics course.
Whatever your situation, you will soon read that all introductory economic text book authors make the point, usually in their respective text’s first chapter, that a primary benefit of studying economics is that it aims to transform one into a more effective and influential citizen by enabling one to better understand and conclude on the economic positions and promises of those running for public office. The underlying logic is that a citizen or voter that is well-versed in basic economic principles will be a smarter citizen and more likely to vote for the political candidate or referendum that will deliver the greatest economic gain for the citizens of the locality, state, and/or nation. In fact, this “economics for citizenship” reason is why a growing number of states now require completion of a basic economics course as a requirement for high school graduation.
In my classroom, I informally call the study of economics “the 180 degree science” because as the student studies this social science for the very first time they often develop conclusions that are precisely the opposite (hence, the “180 degrees”) of what they had originally believed before taking their first economics course.
For example, here are two “180 degree moments”, which are applicable to the United States’ economy, that you may well learn in your first year economics’ course:
1. Pre-Econ Course or Uninformed View: “We don’t make anything anymore in America. America’s manufacturing prowess is in a state of constant decline. It seems like almost everything bought and used in the U.S. is made in China”
Post-Econ Course and 180 Degree View: The dollar value of manufactured goods in the United States, restated for price level changes so the comparison is accurate, is up over 50% for the last 13 years ending in June of 2010! Yes, it is true that the U.S. has lost several million jobs in manufacturing over that same time period, but that is primarily due to rising manufacturing productivity (think machines & technology replacing humans), where the U.S. can now produce more valuable manufactured products than ever before freeing up those displaced manufacturing workers who now have found or must find employment in other more labor-intensive service-related businesses.
Moreover, the US has maintained its percentage share of rising global manufacturing product over that same aforementioned time period, whereas other countries, such as Japan and Germany, have actually decreased their percentage share of global manufactured product. More specifically, in 2006 U.S. manufacturing revenue, profits, exports, and productivity per employee reached their all time peak, just prior to the onset of the Great Recession! Although manufacturing output is at its highest level ever and will continue to rise into the foreseeable future, it will also continue to decline as a percentage of overall economic activity as the United States is growing faster in services than in manufacturing.
Whatever your situation, you will soon read that all introductory economic text book authors make the point, usually in their respective text’s first chapter, that a primary benefit of studying economics is that it aims to transform one into a more effective and influential citizen by enabling one to better understand and conclude on the economic positions and promises of those running for public office. The underlying logic is that a citizen or voter that is well-versed in basic economic principles will be a smarter citizen and more likely to vote for the political candidate or referendum that will deliver the greatest economic gain for the citizens of the locality, state, and/or nation. In fact, this “economics for citizenship” reason is why a growing number of states now require completion of a basic economics course as a requirement for high school graduation.
In my classroom, I informally call the study of economics “the 180 degree science” because as the student studies this social science for the very first time they often develop conclusions that are precisely the opposite (hence, the “180 degrees”) of what they had originally believed before taking their first economics course.
For example, here are two “180 degree moments”, which are applicable to the United States’ economy, that you may well learn in your first year economics’ course:
1. Pre-Econ Course or Uninformed View: “We don’t make anything anymore in America. America’s manufacturing prowess is in a state of constant decline. It seems like almost everything bought and used in the U.S. is made in China”
Post-Econ Course and 180 Degree View: The dollar value of manufactured goods in the United States, restated for price level changes so the comparison is accurate, is up over 50% for the last 13 years ending in June of 2010! Yes, it is true that the U.S. has lost several million jobs in manufacturing over that same time period, but that is primarily due to rising manufacturing productivity (think machines & technology replacing humans), where the U.S. can now produce more valuable manufactured products than ever before freeing up those displaced manufacturing workers who now have found or must find employment in other more labor-intensive service-related businesses.
Moreover, the US has maintained its percentage share of rising global manufacturing product over that same aforementioned time period, whereas other countries, such as Japan and Germany, have actually decreased their percentage share of global manufactured product. More specifically, in 2006 U.S. manufacturing revenue, profits, exports, and productivity per employee reached their all time peak, just prior to the onset of the Great Recession! Although manufacturing output is at its highest level ever and will continue to rise into the foreseeable future, it will also continue to decline as a percentage of overall economic activity as the United States is growing faster in services than in manufacturing.
2. Pre-Econ Course or Uninformed View: “It is patriotic for U.S. citizens to “buy American” so that we can help our own economy. When we buy foreign products (i.e., exports), in lieu of American products, we hurt our U.S. economy as we lose American jobs and incomes.
Post-Econ Course and 180 Degree View: The U.S. will benefit the most economically if Americans buy what they consider to be the very best product, in terms of price and quality, regardless of whether it is a foreign-produced product or an American-produced product. One of the greatest “ah-ha” moments in all of economics is when an economics’ student or citizen learns for the first time that every time a U.S. buyer purchases a foreign product (i.e., an “import”) that those same U.S. dollars spent on the foreign product circle back to a U.S.- based company, not a foreign company. Yes, I am telling you that when you (or Wal-Mart, for example) buy Chinese shirts, your same U.S. dollars spent quickly end up in the hands of, say, an Apple, Microsoft, IBM, or General Electric to maintain or increase U.S. employment, profits, and stock prices!
Let me try to explain this concept in more detail so that I may actually be able to convince you of this amazing “180 degree” revelation. I always say the more accurate slogan should be “Buying American is Un-American”, since it creates a weaker America!
Let’s say that the United States (we’ll say Wal-Mart) decides to buy some shirts costing $400 from a Chinese shirt manufacturer, in lieu of buying similar shirts from, say, a shirt manufacturer in Elon, North Carolina (USA). The first key point is that when Wal-Mart buys the shirts from China for $400 it can only pay China with US dollars. Why? Because Wal-Mart has only US dollars! It has no Chinese currency (Yuan). It literally drains its bank account of US dollars that are transferred/paid to China! The second key point is that when China receives that same $400 US dollars for the shirts, China cannot, unfortunately, spend any of the $400 in its own economy since only the Yuan is accepted as a medium of exchange in China! China is now forced to either throw the U.S. currency away (not advised!), or immediately spend the money back to the USA (advised!).
In summary, China has initially traded a product (shirts!) for paper (US dollars!), and those US dollars cannot be spent in China. For China to receive any value at all for the shirts it sent to America, China must now spend the $400 back into the US economy for, say, a few i-Pods from Apple (USA). Cutting through to simplicity, in essence, it’s almost as if Wal-Mart (USA) just paid Apple (USA) $400 directly! Yes, the economic “punch line” is that all spending by the domestic nation on foreign products (imports), in turn, are spent immediately back to the domestic nation increasing or maintaining that domestic nation’s employment, income, and standard of living.
And, yes, let’s not forget about that Elon, North Carolina shirt maker that did not get the original $400 from Wal-Mart in our above example! Any good economy promotes competition and I will be excited to see if that North Carolina shirt manufacturer can “raise their game” (increase productivity and/or quality), and hopefully get the next shirt contract from Wal-Mart! If not, well, that North Carolina firm may just have to close down. But remember the key point is that the $400 spent for the Chinese shirts went to Apple, in lieu of the Elon, North Carolina shirt manufacturer. If Wal-Mart would have “bought American” by buying from the Elon shirt manufacturer, even though the Chinese shirts were preferable, Wal-Mart would have prevented the more effective U.S. business (Apple, in this example) from getting your U.S. dollars by giving them to the less efficient Elon manufacturer. In short, you would have contributed to American inefficiency and mediocrity, hurting our country! And that is un-American!
Now, you may be thinking the following if you have a little economics’ background: “But the US has a growing trade deficit with China, so China may not immediately buy those i-Pods from Apple for $400. And, you are correct, but that is also not a problem for either the United States or China. What China is really doing right now is deciding to temporarily save or invest a minority percentage of their US dollars received from U.S. import purchases. Said another way, China is not buying as many US i-Pods as the US is buying Chinese shirts and, of course, we call that situation the US trade deficit which immediately seems to speak “problem”. But it is really not as big a problem as most people think! China is still spending their “saved” US dollars back into the US economy, but in different ways. China is saving and investing some of those US dollars directly into the United States economy by building plants in America, buying US stock to fund American companies’ expansions, and temporarily saving some of their dollars, for future US purchases, by buying US bonds to help the US government pay for other US government initiatives necessitating borrowing. Eventually, China will sell these US bonds and be forced to use those U.S. dollars to buy those i-Pods or build more plants in America to employ more Americans!
I decided to highlight this particular “180 degree moment” because of the fact that the recently passed $800 Billion U.S. stimulus bill has some “buy American” provisions within it. Based on my intuition, I believe that over 95% of adult Americans believe that these “buy American” clauses somehow help our economy more so than if the stimulus bill was silent on “buy American”, thus allowing stimulus money to be spent on foreign-produced products as well. Yes, it is an economic principle that if U.S. citizens “buy American” driven solely by patriotism (and not because they think the product is superior) the American economy actually becomes weaker as the U.S. dollars spent out of patriotism on that American company are, therefore, unintentionally withheld from another more efficient and deserving American company.
In summary, when citizens of any country in the world buy the product that is best for them based on a combination of quality and price, they will be taking the most patriotic action possible to help their own country they love so much! If a domestic citizen sees the foreign product as a better alternative to the domestic product, buy it! Your money spent will immediately find its way back through the “trade loop” to another business within your country!
Of course, this is why all economists from around the world know that international trade, and not protectionism, helps a country’s standard of living and promotes efficiency and rising standard of livings!
Well enough for now. I could go on and on with more 180 degree moments relating to areas such as standard of living, unemployment, the minimum wage, gasoline taxes, and many others. But we’ll discuss some of those in class and I will cover others through this blog site. For now, I just really hope you look forward to and work hard in your economic course so that, you too, will become a more informed and influential citizen as you begin to see your nation’s economy, and our global economy, in a whole new light!
Discussion Questions:
1. What is the primary reason that employment in the U.S. manufacturing sector decreases over time, yet manufactured output continues to rise?
2. Would you be surprised to know that manufacturing employment is also decreasing at the same rate in Germany and Japan as it is in the United States? Why do you think it is? Where do these displaced workers need to find jobs if it is not in manufacturing? Is this a good or bad situation for an advanced economy's future growth in standard of living?
2. Would you be surprised to know that manufacturing employment is also decreasing at the same rate in Germany and Japan as it is in the United States? Why do you think it is? Where do these displaced workers need to find jobs if it is not in manufacturing? Is this a good or bad situation for an advanced economy's future growth in standard of living?
3. What happens to the U.S. dollars we send to Saudi Arabia to buy their oil? Can the Arabs use our U.S. dollars in their own economy? What are two logical choices that Saudi Arabia can do with their U.S. dollars?
1. The primary reason that employment in the U.S. manufacturing sector decreases as manufactured output increases is through new technology. Robots and machines take the place of humans because they are more efficient and reduces human error.
ReplyDelete2. I wouldn't be very surprised to know that manufacturing employment is also decreasing elsewhere in the world because technology improves all over, not just in the United States. If workers can't find a job in manufacturing they should need to find labor-intensive service-related jobs. This is bad for an advanced economy's future growth in standard of living because the U.S. is growing in services faster than it is in manufacturing.
3. When we send U.S. dollars to Saudi Arabia, they keep it because they aren't accepted in Saudi Arabia. Instead, they spend it on U.S. products so the dollars return to the U.S. However, if they don't buy U.S. products, they could also invest in stocks or other developments in the U.S.
1. The reason why the employment in the U.S. manufacturing section continues to decrease while manufactured output rises is because of technology and its manufacturing productivity. The more efficient machines become, the less workers are needed to operate the manufacturing plant.
ReplyDelete2. No, I am not surprised about Japan and Germany because as technology around the world gets more and more advanced, there will be less employed workers. Instead of going to more service-oriented jobs however, these displaced workers should all come and take Mr. Ladder's AP Macroeconomics course so they can learn more about the economy. Then, they should use their extreme patriotism to fuel some entrepreneurial spirit so they can go out and manufacture some great American products that everyone will want to buy. This would be much better than for the future standard of living than if all those workers went into the service industry because it would increase manufactured output and promote more trade!
3. Since Saudi Arabia cannot use the dollars we gave them for their oil in their economy, they will have to use them to buy goods from other countries (most likely us because it is our currency). Two other logical choices Saudi Arabia has are to invest the money in U.S. stocks or to buy U.S. government bonds.
1. employment in the U.S. decreases with the advances of technology. Machines are taking over manufacturing jobs, previously held by humans, being that they are more efficient, produce products with less error, and do it in a more timely fashion. Due to the extreme efficiency of technology today, the United States' output of goods is greater than ever before.
ReplyDelete2.Germany and Japan continue to make technological advances along with America, so it is not surprising that they would follow the same employment trend as America. Workers who have had their jobs taken by machines should look to more labor-intensive service jobs for work. These jobs, however, typically requiring less skill and giving lower pay, narrow the field of people who could actually afford these services, therefore hurting the economy.
3.When we buy oil, or any goods from other countries, these countries receive our currency, which cannot be used in their economy. So, if they do not want this money to go to waste, they must either invest their money in the U.S. by buying American goods or investing in other U.S. stocks.
1. Employment continues to decrease due to the higher quality of technology. Technology is now taking place of many jobs once done by humans such as car factories; an assembly line of humans is no longer necessary. Today, there is more emphasis on quality rather than quantity. We will always need humans in the workforce to repair machines and technologies, but a large mass of human workers is no longer needed.
ReplyDelete2. I would not be surprised to know that other major countries' manufacturing employment is decreasing in the same rate as the U.S.. The U.S. and other major countries are all interconnected, so we all trade with each other and have many of the same desires. Therefore, if one of our economies is bad, the others will take a hit too. Workers will need to find jobs in the labor intensive workforce because otherwise they will not have the skills and education necessary to compete with the high demand of today's society. The Standard of Living will always be better for the next generation no matter what. This is good for the future standard of living because many workers will strive to become better skilled and work to get the best job possible.
3. When we send U.S. dollars to Saudi Arabia, they cannot use them. If they would like to, they could use them in the drug trade, but that would not give them the best profit. So, they could use the U.S. dollars to buy American products and U.S. stock which would help them invest for the future.
1) The primary reason that so many people are unemployed is because of the advancement of technology through the past few decades. However, because machines do the work of multiple people, more people get fired and replaced by these machines. They produce more items leading to more profit but workers continuously get fired from their job.
ReplyDelete2) I would not be that surprised because Germany and Japan are both places with a booming economy as well as nations that live in surplus. Also, both places seem to be on the rise with technology so I would not be surprised that many workers, especially in factories, are replaced by modern technology and machines. In some ways, Germany and Japan are more advanced than the United States so they could also have a decrease in manufacturing employment. The people who lost their jobs should try to find a job in the business world or any place where machines cannot substitute them. Another option that they have is that they could get a degree in college and get a higher position to ensure the safety of their job. This is a bad condition for the future economy because as more and more people get replaced by machines, more people will have no jobs and be unemployed. Also, if more people got a higher education and became entrepreneurs, then there would be too much products on the line so that all these people will not make as much money as they could and lose to competitors and make no money and become unemployed, once again.
3) When U.S. dollars go to Saudi Arabia, they cannot use the American currency in their own economy so they have to spend it on American companies and manufacturers. That way, the money in the worldwide economy will circulate. Two logical choices that Saudi Arabia could do with the U.S. dollars are that they could invest the money in stock or buy American products that are better than Saudi Arabian products. For example, Saudi Arabia could use the American currency to buy machines that are better than in their native country.
1. The primary reason that employment in the United States manufacturing sector is continually decreasing is because of the new and innovative technology that is slowly replacing manual labor. Technology and machinery is gradually taking the place of human employment because of its productivity and expenditure. Manufacturing products through machines are remarkably higher than human production because of its ability to yield merchandise more efficiently and timely. Manufactured output continues to rise because of this more efficient way of assembly and fabrication of goods.
ReplyDelete2. It does not surprise me that employment in other countries, such as Japan and Germany, has declined similarly to the United States. Japan and Germany’s employment in manufacturing is decreasing for the same reason that the United States’ is; technology. As technology is becoming modernized and adapting to a growing culture, it continues to grow exponentially. The jobs that are being replaced by machinery are tasks that require much manual labor or simple duties easily completed by machines. These displaced workers who have lost their employment to technology should return to college and receive a high level of education so they can begin to work not in manual labor, but in other higher educational areas. This is a bad position for the economy to be in and for future growth in the standard of living. The standard of living refers to the income per person or poverty rates. When citizens are out of work, they are not able to make a living wage and support them or their families which drives the standard of living up.
3. The U.S. dollar that is sent to Saudi Arabia to buy their oil is cannot be used in that specific country. The Saudi Arabians cannot use the U.S. dollar because no one in Saudi Arabia will purchase or consume it. The currency in Saudi Arabia is the riyal, meaning the U.S. dollar is worthless for Arabian businesses to utilize in their economy and vice versa. Because the Saudi Arabians cannot use the U.S. dollar in their own land, they must buy from the Americans to return the dollar from where it originally originated from. The two logical choices that Saudi Arabia can do with the U.S. dollar is buy American goods to help our trade grow or invest in U.S. stocks and bonds. Both choices are rewarding to the U.S. economy and helps American significantly.
1. The primary reason that employment in the U.S. manufacturing sector decreases is because of new technology that is more efficient and continually being improved. Employment decreases because new technology can now perform the same work as humans but at a faster more accurate and more efficient rate. As a result of more technological advances in the manufacturing sector companies are able to produce a larger output at a faster rate.
ReplyDelete2. No I would not be surprised because just as the United States is improving technology that can replace the work of humans so are other countries like Germany and Japan. This is why for the same reasons they would have a decreasing manufacturing employment rate because the new more advanced machines and robots can do the same work but better. These displaced workers should look for jobs in more service based or labor based areas where machines aren’t as likely to take their positions. This would be a bad situation for an advanced economy’s future growth and standard of living because it can be hard for people to find a job in the first place especially is they don’t have skill in a specific area. If people can’t get good paying jobs then they won’t be able to afford certain things that would raise the standard of living. If more and more people are unemployed and finding lower paying jobs then it will hurt the economy because they aren’t buying new products.
3. The U.S. dollars we send to Saudi Arabia to buy their oil will mostly likely come back to the U.S. in some shape or form. Saudi Arabia would not be able to use the U.S. currency which would give them a few options. They could either do nothing with the money which probably wouldn’t help them much or they can save it to invest later in U.S. products, stocks, or bonds.
1. The primary reason that employment in the U.S. manufacturing sector decreases over time and yet the productivity continues to increase is the improvements of techonlogy and machinery replacing actual workers. Factoies prefer to rely greatly on those useful technology and mashinery because those allow the factories to produce more accuretly and timely. Therefore even though unemployment is problematic, the rate of production is not a problem.
ReplyDelete2. Personally, I am not surprised to know that manufacturing employment is also decreasing at the same rate in Germany and Japan as it is in the United States because both contries are well-known for producing elaborate technology (sometimes Japan is even referred as a "robot island"). Therefore machineries must have replaced the workers in countries such as Japan and Germany. Even though most of the factories are ran by machinery, there has got to be some workers making the machinery since those are all originally made bu human workers. So I think working in the places where make technology that creates new technology would be good places for the displaced workers to get new jobs. I think this is a bad situation for our economy because since the rate of unemployment is increasing, it is hard for our generation to get guaranteed jobs even if we graduate from brand-named universities.
3. Since they cannot use the U.S. dollars in their economy, they would pay us back with the U.S. dollars we paid when they buy products from us. The other choice would be to save them to invest in U.S. stocks or bonds.
1. Employment in the U.S. Manufacturing sector has decreased at a fairly steady rate over time for a few reasons. Beside the fact that many companies are now outsourcing due to things such as high taxes and unions, many companies are also letting go workers because of new technological innovations. These technological innovations may cost the company a lot at first, but over time the amount originally spent on the innovations will be much cheaper than say a year of paying for employees’ salaries and benefits. Innovations such as machines to make goods not only lower employment in the Manufacturing sector but also raise the manufactured output. The reason this is true is because many of the machines can make more and better quality products than any amount of human workers could in a shorter amount of time.
ReplyDelete2. I am not surprised that Manufacturing employments of other countries are falling as well. I am not surprised because they too are making technological advances to replace workers. Also many companies from all over the world that make these innovations are selling the machinery and ideas to other companies all over the world. Many of the workers who are now unemployed because of machinery now have to find jobs in the service sector such as working as a plumber or for a landscaping company. I wouldn’t say that a shift of employment from the manufacturing sector to the more service based sector is necessarily a bad thing as long as there are jobs available. But any unemployed person is bad for an economy.
3. When the U.S. buys oil from Middle Eastern countries such as Saudi Arabia, Saudi Arabia receives U.S. dollars. Because of this Saudi Arabia can not spend the U.S. dollars in their own economy, they have to spend it back on U.S. products. Besides spending it back on the U.S. they can also make investments in the U.S. like purchasing bonds, U.S. stocks, or even manufacturing plants in the U.S.
1. The primary reason for the decrease over time in US manufacturing sector employment is because of new technology. Manufactured output continues to rise because of the technology and its increasing innovations. New technology makes it so that less humans are needed in the manufacturing process and with new improvements everyday the number of employees continues to dwindle.
ReplyDelete2. No, I am not surprised to know that manufacturing employment is decreasing at the same rate as the U.S. in Germany and Japan because both countries are just as efficient as the U.S. They are both as advanced in technology and are improving just as fast. These displaced workers need to find steady jobs that don't involve machines taking over. If they need to go back to school so they can get a degree in something do so or find a company that needs people to help put together these machines. As long as there are enough jobs for people to find and they are willing to do so then everything should be okay. But high numbers of unemployment is not good for an economy.
3. If we send our money to Saudi Arabia to buy oil they cannot use the money. Since they cannot use U.S. dollars they would have to spend it on U.S. products from the U.S, giving us back the money we sent there. The two logical choices would be to spend it on better U.S. products, or products they don't have, or they could invest it in U.S. stocks and bonds.
1. The primary reason that employment in the U.S manufacturing sector decreases over time, yet manufactured output continues to rise is better technology and machines. Better technology and machines replaces humans, because machines are more efficient. So, even though it seems like manufacture output is decreasing, because employment is decreasing, it’s not true; the manufactured output is actually increasing, because employment is decreasing.
ReplyDelete2. No, I would not be surprised to know that manufacturing employment is also decreasing at the same rate in Germany and Japan as it is in the United States. I think it is because in order to product more products faster and to advance in the economy you have to improve your technology and if you are improving your technology, humans are not needed as much. These displaced works need to find jobs in technology and improving technology. This is a good situation for advanced economy’s future growth in standard of living.
3. The U.S dollars we send to Saudi Arabia to buy their oil get sent back to the United States. The Arabs can not use our U.S dollars in their own economy so they are forced to buy American based products. Other than buying American based products another logical choice would be to invest or save the U.S dollars. This also helps the U.S. economy because America can temporarily borrow the money in order to “pay for other US government initiatives”.
1. The primary reason that employment in the U.S. manufacturing sector decreases over time, yet manufactured output continues to rise is the production of technology. With technology and machines the need for workers in manufacturing decreases, so less jobs are available. However, the machines work more efficiently than human workers and increase productivity.
ReplyDelete2. I would not be surprised to know that manufacturing employment is decreasing at the same rate in Germany and Japan as it is in the United States, because technological advances are being made all over the world. New technology produced in one country is quickly spread to other countries. Therefore in other countries the need for human workers is decreasing with the increase of productivity. These displaced workers need to find jobs in new companies that provide more services. Manufacturing is increasing now, but in the future it will decrease in comparison to services. This is not beneficial to the economy because there will be more services than people who are able to use them.
3. The U.S. dollars we send to Saudi Arabia to buy their oil cannot be changed into money that Saudi Arabians can use in their economy. The U.S. dollars can only be spent in the U.S. economy. In order not to waste the U.S. money the Saudi Arabians must use it to buy American products or put it in American stocks. Either way the money is circling back into the American economy.
1. The Primary reason employment in the manufacturing sector decreases overtime but manufacturing output rises is because better technology takes the places of workers and frees them up to work in the service industry.
ReplyDelete2. I am not surprised the same thing that is happening here is the U.S could also be happening in Germany and Japan. The workers that get displaced because of newer technology need jobs, and the best place to find those jobs is the service industry. Also the machines that took the place of laborers also creates new jobs, because they need to be serviced and taken care of. It is a good thing because newer technology is more efficient at producing more goods otherwise it would not have taken the place of the workers. therefore there are more good to be bought at a cheaper price.
3. When we buy oil from Saudi Arabia we send them U.S dollars. But they cant use them because there country does not accept them as there currency. So they are forced to spend their U.S dollars back in the U.S. That leaves two choices, they can either buy U.S products or save and buy stocks in U.S businesses, buy bonds or spend it in America some other way.
1. The main reason as to why employment in manufacturing continues to decrease is because of the great advances in technology. As stated above, technology can provide better products more efficiently than humans. This new and efficient technology produces cutting edge, well made products that cause the output to rise.
ReplyDelete2. I do not find it surprising that Germany and Japans employment in manufacturing is decreasing. New technology is always being created all over the world, not just in America. These new technological advances unfortunately put workers out of a job, but fortunately can help countries economies immensely. These unemployed workers should try to find jobs in technological fields, because there is always something new to discover, or become entrepreneurs and create their own, new business. I think that this is a good thing for an economy. There are now more workers that are able to work in different occupations. This can increase productivity in other areas of the economy and raise the standard of living.
3. When we buy Saudi Arabian oil, we pay with U.S dollars. These U.S dollars come back into the United States circulation because U.S dollars cannot physically be spent in Saudi Arabia. Therefore, the Saudi Arabians will turn around and spend the money on U.S goods. Logically, I think that they can either buy U.S. products that they might not have in Saudi Arabia, or they could in a U.S. company or U.S. bonds. Either way, the money comes back into America, and helps our economy.
Francis Rodriguez
ReplyDelete1. Employment in the US manufacturing sector has gone down, but manufacturing outputs have gone up is because of improvements with technology. Robots can make certain products faster and better than humans.
2. The reason Germany and Japans rate of employment is dropping in manufacturing is the same reason as the US, because of technology. They need to find jobs in jobs like sales, because now that there are a lot of products being produced more than ever before, people need to now market them and distribute them and eventually sell them in a store. This is good for the standard of living in a country because these other jobs that need people to work will pay more, because using your mind usually pays more than doing physical work.
3.The US dollars sent Saudi Arabia to buy oil going into a currency exchange. No the Arabs cannot use the US dollars in their economy. One choice may be to buy US products and another choice may be to loan US dollars to the US government.
1.) The primary reason that employment in the U.S. manufacturing sector decreases over time and manufactured output continues to rise is because of advances in technology. Technological advances make it possible to do more work in less time.
ReplyDelete2.) I would not be surprised to learn that manufacturing employment is also decreasing at the same rate in Germany and Japan as it is in the United States, because they are advanced industrial societies that have access to the same technological advances that we have here. The displaced manufacturing workers need to now find jobs in the service industry. It can be a double-edged sword because on the one hand you have an economy where production is highly efficient due to technology and human resources are being used at a higher capacity. On the other hand this may lead to a higher reliance on imports, which can make an economy overly reliant on an outside source.
3.) The dollars that we send to Saudi Arabia to buy their oil remain dollars. Because the money remains in dollars Saudi Arabia cannot use the money in their economy. The two logical choices Saudi Arabia has in how it can use its U.S. dollars are to either buy American goods or invest in American stocks or Federal Bonds.
1. The primary reason that umeployment in the US manufactoring sector decreases because new innovative techonology has taken over the part of man. This machinery has the capability to produce resources bettering the economy.
ReplyDelete2. I am not suprised that Germany and Japan has also decreased because they like the US use adpated the new machinery instead of humans. The unemployed need to learn how to contrrol and repair this new machinery. It is good becasue the more resources you produce the better the coutrnies economy is but the "survival of the fittest" for employment could take an effect on the industry.
3. The US buys oil form Saudi Arabia with the US dollar. The arabs cannot use the US dollar in their country so in theory almost all the money comes back the US. THey have two options: first, buy US porducts shipped overseas, or second, invest in US bonds, companies, properties, etc.
1. The primary reason employment in the U.S. manufacturing sector decreases over time is because of the increases in technology. The new technology cuts down on the labor and the costs of making the product. This effectively eliminates the labor jobs but it does not decrease the amount of manufactured products. It actually increases the amount of manufactured products.
ReplyDelete2. I am not surprised to hear the manufacturing unemployment is decreasing in Japan and Germany. Earlier in the blog it is mentioned that their net manufacturing production is slipping. These displaced workers need to find jobs in the ever growing service industry. This is a good thing for an advanced economy’s standard of living. This increases the services available to the public while still manufacturing the same amount or more goods.
3. The U.S. dollars that we send to Saudi Arabi end up back in American pockets. The arabs are unable to use are paper money in their economy. The most logical thing they could do is to is to buy an American product that they want.
1. The primary reason that employment in the U.S. manufaturing sector decreases over time, yet manufacuted output continues to rise is the advancement of technology. As technolgy continuously develops and boosts production of better goods more efficiently, less labor of workers are needed. Consequently, less jobs are available for unemployed people.
ReplyDelete2. I would not be very surprised to know that manufacturing employment is also decreasing at the same rate in Germany and Japan as it is in the United States because development of technology is not only seeked by the United States but also by many other countries that are willing to make improvements on their economy. Just as less human labors are needed in the United States as technology advances, there will be limited number of people that manufacturers want to hire. These displaced worekrs should try to find jobs that require human skills and talents such as teaching and cooking. Of course, they need to develop or learn new skills first in order to success in those fields. This is not a good situation for an advanced economy's future growth in standard of living because as more people get fired or are not hired, economy will drop for they will not be able to spend their money to buy goods and as a result, little money will be circulated in the United States.
3. When we send U.S. dollars to Saudi Arabia to buy their oil, they will not be able to use U.S. dollars in their country since they have different currency from that of the United States'. Therefore, they will have to spend U.S. dollars to buy American goods which means that the money will flow back th the United States. Or, they can save for future purchase or invest in U.S. companies.
1.) The primary reason that employment continues to decrease but manufacturing output increases is because of the advances in technology. Robots are taking the workers places because not only are they more efficient but they can reduce the amount of errors made as well.
ReplyDelete2.) I am not surprised that employment rates around the world are also dropping because technology is growing rapidly all around the world. If these workers can't find jobs in manufacturing they should go out and try to find some in the labor or service oriented field. If this happened however it would be good and bad for the nations economy and standard of living. It would be bad because these jobs don't pay very much therefore bringing down the standard of living but at the same time it would give unemployed people jobs and a salary which helps the economy grow.
3.) When we buy oil from Saudi Arabia the don't want to keep our money because it is not accepted in their country. Usually they buy products from U.S. companies and by doing that they give us our money back because as I said they can't use it in their economy. However if they don't want to buy U.S. products they could invest the money in U.S. stocks or other companies.
1. The primary reason that employment in the U.S. manufacturing sector decreases over time is because the updating technology. As technology advances, it starts to to do more advanced jobs that humans used to do. Therefor, technology is replacing many jobs causing unemployment to rise rapidly. Manufactured output continues to rise because technology can be more efficient and finish a task faster than a human.
ReplyDelete2. I am not surprised that Germany and Japan is also decreasing in employment of manufacturing because the United States is a competitor for the manufacturing of goods and technology is increasing in these places just as fast as it is in the United States. As more and more people are getting laid off, the act of doing so is not good for the circulation of economics. If people are starting to be unemployed, they will not have money to spend on goods. This will mess up the cycle of economics. These displaced workers need to find jobs at other places that are willing to hire. The Washington Post has a new section on jobs and businesses that are willing to hire.
3. The U.S. dollar that we send to Saudi Arabia to buy their oil does absolutely nothing for them in the sense that they can not just go buy things in Saudi Arabia with our dollar. When they buy goods from the United States, we are in the same boat as they are with our money. This is when a middle man comes in and takes care of the circulation of money whether it is back to the United States or back to Saudi Arabia. So, spending our money on items from other countries does not hurt our economy because it eventually gets circulated back to of which it came from.
1. The primary reason that jobs are decreasing in the U.S. manufacturing sector is due to better technology. Machines are working in areas previously employed by humans. Now, humans must pursue other jobs in which they can make themselves even more useful.
ReplyDelete2. I would not be surprised that U.S. manufacturing jobs are declining at the same rate of jobs in Japan and Germany.I think that they too probably have lots of technological advances that allow machines to take the place of humans.The U.S., Germany, and Japan probably all have this same situation. These workers who have been replaced could then find jobs in other areas that require manual labor, such as construction or yard work, they can try their hand at some jobs that require knowledge of a particular trade, or if they have the time and money, get a degree. I believe it is a good situation for an advanced economy's future growth in standard of living because then people are freed to pursue other jobs where society needs them more.
3.When we buy Saudi Arabia's oil with U.S. dollars, they cannot use the currency in their country. They must then spend it on something from the U.S., such as North Carolina T-shirts, because they do not use U.S. dollars in their economy. Along with buying T-Shirts from North Carolina, they also have the option of establishing a petroleum engineering facility in the United States, thus opening up jobs for Americans.
1. What is the primary reason that employment in the U.S. manufacturing sector decreases over time, yet manufactured output continues to rise?
ReplyDeleteThe primary reason that employment in the U.S. Manufacturing sector decreases over time is because of machine taking over for humans. Because companies can invest in machines that do the same jobs as humans, and cost less, they are laying off more people and investing in more machines. These machines are just advances in technology and these advances are going to continue forever. People, innovators, are going to continue making advances in technology so humans do not have to work as hard. The manufactured output continues to rise because the new technology becomes increasingly efficient as newer versions are released.
2. Would you be surprised to know that manufacturing employment is also decreasing at the same rate in Germany and Japan as it is in the United States? Why do you think it is? Where do these displaced workers need to find jobs if it is not in manufacturing? Is this a good or bad situation for an advanced economy's future growth in standard of living?
No, I am not surprised to know that manufacturing employment in Germany and Japan is decreasing at the same rate as the United States. Because new technology is taking over the world, we see more and more machines doing jobs that humans used to do. These displaced workers need to find jobs in different sectors that they can specialize in. This is a bad situation because in the future, more people will be laid off, therefore causing them to spend less money, which will result in another depression.
3. What happens to the U.S. dollars we send to Saudi Arabia to buy their oil? Can the Arabs use our U.S. dollars in their own economy? What are two logical choices that Saudi Arabia can do with their U.S. dollars?
When our U.S. dollars go to Saudi Arabia to buy their oil, they can only hold onto it and them spend it back in America. Therefore, they are never able to use it in their own economy. Their two logical choices are to trade it to other countries or trade it back into the U.S. Both of these options help the United States because the circulation of money helps our good businesses prosper.
1. The primary reason that employment in the U.S. manufacturing sector decreases over time, yet manufactured output continues to rise is because of the continuous advances in technology. New advances in technology include new improvements with machinery. As machinery becomes more popular and reliable, the need for workers in the U.S. manufacturing sector beings to decrease. Machines are more efficient than humans because machines have the ability to produce products at a faster pace. The production of more machines leads to the decrease of workers in manufacturing. Therefore, the workers from the manufacturing industry are now available to work in other sectors of the economy.
ReplyDelete2. I am not surprised that the manufacturing employment in Germany and Japan is decreasing at the same rate as it is in the United States. The manufacturing unemployment rate in Germany, Japan and the United States is decreasing for the same primary reason. This primary reason involves new improvements and discoveries in technology. Technological advances are being made all over the world, and are not limited to the United States. The displaced workers need to search for jobs in other sectors of the economy. If these displaced workers find jobs in various areas, then productivity in certain areas will begin to increase. Even though the manufacturing employment rate is decreasing, the advances in technology are greatly contributing to each country’s economy, and therefore increasing productivity.
3. When we buy oil from Saudi Arabia, the U.S. dollars that we spend eventually circulate back into the United States. Most countries have different forms of currency. In such countries, citizens may only use the country’s approved currency to purchase goods and other items. Therefore, the Arabs cannot use our U.S. dollars in their own economy. The Arabs have to decide how they are going to spend their U.S. dollars. One option would be for the Arabs to use their U.S. dollars to purchase goods from within the United States. If the Arabs refuse to spend the U.S. dollars on American goods, they have another option. A second option would be for the Arabs to invest the U.S. dollars in U.S. stocks or other companies within the United States.
The main reason that employment in the United States manufacturing sector decreases over time and the manufactured output continues to rise is because of new technology being developed that can take over jobs previously done by humans and mass produce products more efficiently and with higher quality than before.
ReplyDeleteThe fact that countries like Germany and Japan’s manufacturing employment is also on the decline does not surprise me because of the reason that technological advancements affect countries world wide, not only the united states. Since there is no work needed in manufacturing the displaced servicemen end up either working in labor intensive services or other areas. I believe this is probably bad for the advanced economy’s future growth in standard of living because there is a higher unemployment thus more people without an income and without money they have no way to sustain themselves in a higher standard of living.
The US dollars that are used to purchase oil from Saudi Arabia are turned around and used by the Saudi Arabians to purchase American goods because US money is worthless in Saudi Arabia. Two logical ways Arabs can use the American money that they receive for their oil is one reinvesting it into American companies, or using it to purchase American made goods.
1. The primary reason that employment in the U.S. manufacturing sector decreases over time, yet manufactured output continues to rise is simply that technology keeps advancing. New machines are being made to do much more work much faster than humans could. Therefore, human laborers are not as much of a necessity. Machines do cost money to produce, but they do not need to be paid wages like human workers do, so in the long run they are cheaper and more efficient.
ReplyDelete2. I am not surprised to know that manufacturing employment is also decreasing at the same rate in Germany and Japan as it is in the United States. Technological advances are rapidly occurring across the world, therefore causing less of a need for human workers in the manufacturing industry. This is actually a very good situation for the economy because manufactured goods are being produced quicker and for less of a cost, and the workers who lose their jobs in the manufacturing industry go find jobs in other services. This causes a rise in the manufacturing industry as well as a rise in the other industries that will benefit from the influx of new workers.
3. When we send U.S. dollars to Saudi Arabia to buy their oil, they are basically stuck with it. They cannot do anything with it in their own country. The only place that those U.S. dollars can be used is back in the U.S., and that is what the whole concept of trade is built upon. Saudi Arabia can either a.) Use that money to purchase goods from the United States or b.) Invest it in American companies.
1. The primary reason that employment in the U.S. manufacturing sector decreases over time, yet manufactured output continues to rise is that manufacturing productivity is always on the rise. The U.S. can now produce more valuable manufactured products than ever before. An example of this would be the extreme decrease in the number of farmers in the U.S., yet we produce more food than ever.
ReplyDelete2. I would not be surprised to know that manufacturing employment is also decreasing at the same rate in Germany and Japan as it is in the United States because those two countries have always competed with the U.S. over technological advances. Every country is always trying to create better products and more of them, for a cheaper price. Machines work cheaper than humans. The displaced workers must find jobs in other more labor-intensive service-related businesses. This is a good situation for an advanced economy’s future growth in standard of living.
3. When U.S. dollars are sent to Audi Arabia to buy their oil, those very same U.S. dollars are sent straight back to the U.S. and spent on American products. This encourages healthy competition between businesses, something that U.S. businesses thrive on. The Arabs cannot use our U.S. dollars on their own economy because Saudi Arabia does not use U.S. currency. They can either throw the money away, not advised, or spent it back on a United States business! -advised
1. The primary reason that employment in the U.S. decreases over time is because of the constant, rapid increases in technology and the increasing manufacturing ability of machines. It may seem that since many jobs are being lost, manufacturing output would decrease, but instead man is being replaced my machine. Machines are taking the place of humans in the workforce because they are more productive, have lower error, and are cheaper in the long run because they don’t require a monthly paycheck.
ReplyDelete2. I would not be surprised to hear of worldwide job loss. Technology is not isolated in just one area, but matures in each major country at approximately the same rate assuming that each country in making about the same technological improvements. Instead of working in manufacturing, these workers will need to find a specialized labor job that will require and higher degree and more qualifications than a factory worker. These requirements are not a bad thing for it will improve the countries standards of living and further educate the lower class or the blue collar workers.
3. The money spent towards buying Saudi Arabian money eventually re circulates into the American economy. The Saudi Arabian have no use for American money in their economy since it is not their official currency. Saudi Arabia can either spend the money back to American corporations or invest in other U.S. stocks. Worst case scenario, the Saudi Arabian government will just store the money in their account until they find another American good to buy in which case the money will still get back to the U.S. but at a later time.
Discussion Questions:
ReplyDelete1. The main reason that employment in the U.S. manufacturing sector is decreasing and the manufacturing output continues to increase is because of technology. Man is being replaced by machines; there is no need for human employees when a company can have machines do all the work for them. Machines are more accurate, cost less money, and waste less time than humans do. As a result, employment decreases and the manufacturing output increases.
2. I would not be surprised at all to learn that other countries employment rates are decreasing just like they are in the U.S. Technology is spreading across the world, which is good but at the same time bad.. People need jobs in order to have a source of income to support themselves and their family. With machines taking jobs all over the world, it makes it harder to find a job. However, it is a good thing because like i said earlier, machines are much more efficient than humans and can make more money much faster for the company. These unemployed citizens could look into the business, retail, or computer work areas for jobs.
3. Saudi Arabia cannot spend U.S. dollars on items from their or other countries, so they are forced to buy American. This is a great thing because the money comes back to the U.S. eventually. They cannot use our currency because our currency can only be used in the U.S. So, they can either buy products from the U.S. or they can invest in stocks or other U.S. companies.
1) The primary reason for the decrease in employment but the increase in manufacturing output is because of the constant technological advances. Factories all across America are embracing new technologies to keep up with their competitors. Some factories are even all automated and run by robots. This directly affects jobs and unemployment, for at one point these positions were open, but robots and other technologies have now taken these positions.
ReplyDelete2) I would not be surprised to find that manufacturing is not only decreasing in America but all over the world including Japan and Germany. As we continue to take strides forward in technology, other countries try to keep up with our pace and standard of technology. Many countries are even right on pace or leading us such as China or India. As technology advances, the number of jobs decreases in manufacturing, for robots are more efficient and are cheaper than paying numerous workers. All these unemployed individuals need to look into labor service related jobs, specifically jobs that are more involved in manual labor. The alternative to this laborious lifestyle would include returning to college, earning a higher degree, and finding a better job with your newly acquired education. Either way, this does not bode well in the coming years, for until citizens learn to cope with the ever advancing technologies, unemployment will be a factor. I believe that in the years to come, there will be an established balance, that will both creates jobs, but also infuse technology into our society, therefore combining labor with technology and helping to erase our employment deficit.
3) When the U.S. pays Saudi Arabia in U.S. dollars, it causes these oil companies to infuse the American money back into our economy, for they have nowhere else to go with it. The Arabs find our money useless in anywhere besides the U.S. so therefore turn and put their money in one of two places. Two places they could put it back into our economy are: one, buying U.S. products therefore infusing the money back into the U.S., or purchasing investment or stock.
1. The primary reason that employment is decreasing in the U.S. is because machines are being developed that replace people. New machines are brought abour and can perform the same task as a man twice as fast, with much less chance for error. This is resulting in people losing jobs, but more output because the machines can do twice as much work, twice as fast.
ReplyDelete2. I would not be surprised to hear that at all, in fact it would be more surprising if it was the opposite. Technology increases almost globally, because one country sees something that another country has done, and succeeded with, and naturally wants to do the same. This results in more machines across the world pushing people out of jobs. Consequentially, these people have to find other labor intensive jobs that have not yet been overtaken by machines. This is a good thing for an economy's future, as it will improve the output by countries, and thus improve the standard of living. Also, this will cause some of the less intelligent people who relied on manual labor to become more educated.
3. If we were to buy our oil from Saudi Arabia, it would eventually find its way back into the American economy. Although they have our money, they can not use it because it is not the accepted currency in their country. Two reasonable solutions to this are purchasing items from America, or investing in American stock. Both of these will cause the money to end up in America, and if all else fails, they will just save the money until they find something they want.
1. The primary reason that employment in the U.S. manufacturing sector decreases over time and the manufactured output continues to rise is because more technology is being produced in the United States. The increase in technology causes more products; however, it requires less human labor.
ReplyDelete2. No, I would not be surprised to know that manufacturing employment is also decreasing in Germany and Japan because both of those countries are also producing new technology. The people that have lost their jobs due to the new technology should look for more labor intensive jobs. That would decrease the likelihood of being replaced because of technology. I think this has positive and negative effects on the economy. It is bad because the rate of unemployment will continue to rise which hurts the economy. However, the production of goods may increase because certain technology can do jobs better than human labor.
3. When we buy oil from Saudi Arabia and send them our U.S. dollars, they cannot do anything with them in Saudi Arabia because they have a different currency. Therefore, they usually send the dollars back to American in exchange for products or invest the money in the U.S.
1. The primary reason that employment in the U.S. manufacturing sector decreases over time, yet manufactured output continues to rise, is due to new technology. Manufacturing productivity has increased in recent years and developed machines and other forms of technology to replace humans in the workplace. These new machines and forms of technology have enabled the United States to create products that are better than we’ve ever seen. Not only have they created better products for consumers, the new technology has also removed unproductive workers from the workplace and improved the efficiency of our manufacturing.
ReplyDelete2. No, I would not be surprised to learn that manufacturing employment in Germany and Japan is decreasing at the same rate as the United States. Likewise to the United States, I think their employment rate is decreasing because they are also making advancements in technology. The workers that were replaced by technology and machinery are now finding jobs in service-related businesses that require more intensive labor and human interaction. This is a bad situation for the economy’s future because economic activity is grower faster in service related businesses than in manufacturing.
3. When we send U.S. dollars to Saudi Arabia to purchase oil, the dollars are eventually returned back into our economy. No, the Arabs cannot use our currency in their own economy. They can only use their own currency and paper money in their country. The two most logical choices Saudi Arabia can do with their U.S. dollars is to buy American made products or to invest in our economy through stock and bonds. Whatever option the Arabs choose, the money is returned back into our economy.
1. The primary reason for a decrease over time in employment in the manufacturing sector, yet the manufactured output still increase is the advancement in technology. Technology has begun to rapidly change and improve production. This is not necessarily a bad thing because it free up labor to produce more or other goods/services.
ReplyDelete2. I am not surprised that manufacturing employment is decreasing in Japan and Germany as it is in the U.S. I think this is because these countries are also making great technological advancements. These displaced workers need to develop a skill at being able to provide a service the country is in need of. This is a good thing because it frees up workers to provide others services. This is good for the economy because the more goods and services you can provide the stronger the economy.
3. When U.S dollars are sent to Saudi Arabia, the Saudi Arabians use the money to buy American goods that they value. The Arabs cannot use US dollar to pay in cash. This leaves them with the option to loan us the money or buy American goods.
1. Employment decreases over time while production rises because of an increase in the training and technology available to the workers. This allows the workers to labor more efficiently thereby requiring less of them.
ReplyDelete2. No. Nations like Germany, Japan, and the US have high levels of resources, technology, and education. This results in a smaller, more efficient industrial workforce. These displaced workers are now freed up to take advantage of their country’s level of education and technology by taking jobs in the service and technology sectors as cutting edge doctors, pioneering attorneys, and innovative thinkers. This is a good thing for the growth of the nation’s standard of living because it allows the number of industrial goods and technological services to increase at the same time. Meaning that everyone will have more of everything.
3. US dollars sent to Saudi Oil Companies must come back in to the US economy because Saudi’s can not use US dollars. These Saudi Oil Companies can then either buy the best US goods they can find or invest in the best US companies they can find.
1. Employment in the U.S. manufacturing sector has decreased over time because we have become more efficient. This is why our manufacturing output is also on the rise. This has a lot to do with technology. Technology has taken the place of a man in the manufacturing sector.
ReplyDelete2. It would be predictable to say that Germany and Japan’s employment in the manufacturing sector has also decreased. The United States, Germany, and Japan all have had increased manufacturing output because of technology. These people who were displaced need to find employment in another labor sensitive field.
3. When we buy oil from Saudi Arabia, we trade our dollars for the oil. Now Saudi Arabia cannot do anything with dollars in their economy, it does not mean anything there. They then have two choices with the dollars. First they could just throw it away or they can use those dollars to buy U.S. goods.
1. The primary reason as to why employment in the U.S. manufacturing sector has decreased is because the United States has continued to flourish and keep up with the "modern time". New machinery that can work at a faster pace than humans has taken the place of the average American worker. This machine may be able to produce more goods quicker and more efficiently.
ReplyDelete2. It does not surprise me that Germany and Japan's employment has also decreased because they are just as modern, if not more modern, than we are. The technology today is able to produce goods at an increased pace and it may very well be less expensive. Why would a business owner pay a human to work at a slower pace and have the opportunity to mess up rather than paying the cost of a machine to do a better job? It would not make sense to do so. These displaced workers are now faced with the challenge to find different jobs, which is not easy in an economy like our's today. I think having machinery produce goods is better for us because the goods will be better and we will get them quicker.
3. When we purchase oil from Saudi Arabia, the U.S. Currency becomes worthless in their country. They may use the U.S. dollar to pay for U.S. goods, so our money is coming back into our economy. They may also use it to invest in U.S. stocks or government bonds.
1. The primary reason why the employment in the U.S. manufacturing sector has decreased because the world is modernizing. New machines are replacing the workers.
ReplyDelete2. I am not surprised that Germany and Japan's employment is decreasing because they are modernizing as well. Machines are taking the jobs away from people, but production is increasing.
3. When we buy oil from Saudi Arabia, the U.S, currency is worthless in the Middle East. They might use American money to buy our goods which basically means they are giving us the money back.
Sean O'Bren
ReplyDelete1. The reason that there are less workers in the manufacturing sector is because there are more technological advances. These advances bring more machines to the field which increase the out put while putting laborers out of work.
2. I am not surprised that Germany and Japan are also decreasing in the manufacture sector with the US. These nations are advancing on the technological front which on the down side puts laborers out of work. The workers should find jobs in other parts of the economy .
3. When we buy oil from Saudi Arabia they can use our currency and buy products back from us. The other thing they can do with our currency is invest in our stocks.
1. Primary reason that employment in the U.S manufacturing sector decreases overtime, yet manufactured output continues to rise is technological advancement which replace human labor forces to machine power. Because of automatized industry, less people are employed by company, but the company still manages to produce more manufactures.
ReplyDelete2. I would not be surprised to know that manufacturing employment is also decreasing at the same rate in Germany and Japan as it is in the United States. Like United States’ manufacturing industry, that of Japan and Germany is being high be automated. Lots of machines replace human forces such that decrease employments in those two countries. Those displaced workers need to find jobs in third or primary industry. Service industry still provides displaced workers chance to earn money. Since more manufactured products are produced, it may be good situation for an advanced economy’s future growth in standard of living. Profuse products will simultaneously result in decrease of price, and most of people will be able to handle the price of foods.
3. If U.S dollars are sent to Saudi Arabia to buy its oil, U.S will be get the resource of Saudi Arabia. The influx of dollar to Saudi Arabia significantly affects its economy. Since dollar is one of the most ubiquitous current in the world, its circulation is easier than other current. Even though there is another current for Saudi Arabia, mafia, prostitute, or black market may use dollars. Then, the dollar will come back to U.S. Two logical choices that Saudi Arabia can do with their U.S dollar is to buy products from U.S.A or to use as money for trade with other country. Basically the money will come back to U.S.
1. The primary reason that employment in the U.S. manufacturing sector has decreased over time and input has increased is because of technological advancements. More efficient, productive machinery has replaced obsolete human labor. This type of unemployment, structural unemployment, is actually good for the economy because that means we are moving right on the production possibilities frontier because we are producing more output. We are experiencing more production because advancements in technology and production methods are outperforming human labor. Even though these manufacturing workers need to find more jobs, it is good for the economy. They will find jobs in other sectors of the economy and the country will produce more output and thus experience more economic growth.
ReplyDelete2. I am not surprised to know that manufacturing unemployment is decreasing at the same rate in other areas of the world. This is because technological advancement is a world-wide phenomena. America is part of a growing global economy. Many countries are catching up to America in terms of economic growth and production. Just like in America, workers around the map are being replaced by more efficient machines. These workers will most likely have to move to other sectors of the economy such as the service sector. They would probably have to do jobs that new machines necessarily can't do. This is a good thing for all economies because it means they are producing more output (more economic growth). Even though workers are being structurally unemployed they are still moving to the right of their curve. Since they are producing more output for cheaper because of machines they are experiencing economic growth and thus their standards of living are increasing as well.
3. When the U.S. buys oil from Saudi Arabia we purchase it with our own currency. The U.S. dollar is useless in the Saudi Arabian economy. It is virtually a piece of paper with no value. Therefore, in order for them to benefit from our purchase, the money must somehow end up back in our economy. The Saudi Arabians have two options. One; they could buy an American product such as a car. Or two; invest the money into American corporations such as stocks or bonds, or even government bonds. In either scenario the money will be circulated back into the U.S. economy.
1. What is the primary reason that employment in the U.S. manufacturing sector decreases over time, yet manufactured output continues to rise?
ReplyDeleteThe primary reason that employment in the U.S. manufacturing sector deceases over time is because numerous technological advances have occured in the industry. The human laborers are now being replaced by machines, which in turn produces more of the product. The machines are more efficient causing the manufactured output to rise.
2. Would you be surprised to know that manufacturing employment is also decreasing at the same rate in Germany and Japan as it is in the United States? Why do you think it is? Where do these displaced workers need to find jobs if it is not in manufacturing? Is this a good or bad situation for an advanced economy's future growth in standard of living?
I am not suprised that manufacturing employment is also declining in countries like Germany and China because they, like the United States, are also going through various technological advances. The displaced workers need to find jobs in more labor intensive service related businesses. I think it is a good thing for the economy because while people are losing jobs to machines they are forced to be re-educated in other fields thus building smarter people and a smarter nation. The once blue collar workers will find new jobs that may eventually pay more than their past manufacturing occupations.
3. What happens to the U.S. dollars we send to Saudi Arabia to buy their oil? Can the Arabs use our U.S. dollars in their own economy? What are two logical choices that Saudi Arabia can do with their U.S. dollars?
The U.S. dollars we send to Saudi Arabia to purchase their oil becomes worthless to Saudi Arabia. They can not use them in their own economy, but they do have other options. They can either use our dollars to buy U.S. goods or use the money to invest in U.S. companies and buy U.S. stock. Ultimately, the U.S. dollars come back to the U.S.