Dollars and Jens
Saturday, May 08, 2004
creative destruction
Tyler Cowen on industrial decay.
Some Europeans might regard the decay as reflecting our economic weakness. But they have it backwards: our willingness to let industries decline is a significant source of our economic strength. A country with no declining industries is a country that doesn't have many better new ideas.
He goes on to note that, of course, the French are trying to prevent such progress.

I'll genuflect toward the observation that this is hard on the people already in such industries, but the American labor market is really more adept than a lot of people seem to realize, and not just because of attrition. (I've read that the United States has the most flexible labor market in the world, and that this is the primary reason for our economic success.

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