"The decline of manufacturing is not only something natural that we needn't worry about but something that we should really celebrate. With the rise of knowledge-based services, it may be better even for some developing countries to skip those doomed manufacturing activities altogether and leapfrog straight to a service-based post-industrial economy."
What they don't tell you:
"De-industrialization... has negative consequences for economy-wide productivity growth and the balance of payments. A balance of payments deficit means that the country cannot 'pay its way' in the world. Of course, a country can plug the hole through foreign borrowing for a while, but eventually it will have to lower the value of its currency, thereby reducing its ability to import and thus its living standard."
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| 23 Things They Don't Tell You About Capitalism by Ha-Joon Chang |
