The Washington Post had a piece assessing the power relationships in the European Union after the departure of the United Kingdom. The piece discusses whether Germany will play an even more important role. When it turns to potential rivals the piece tells readers:
“France is mired in economic woes and a war on terrorism. Spain and Italy face massive unemployment and political instability.”
It would have been worth pointing out that the reason France is mired in economic woes and that Spain and Italy face massive unemployment and political instability is the austerity policies demanded by the Germans. As a result of these policies, countries are being forced to constrain their budget deficits even as long-term interest rates are near or below zero and inflation is under 1.0 percent.
According to a new study from the European Central Bank, the euro zone’s economy is 6.0 percent below its potential level of output. With Germany near or at its potential level of output this means that the output gap in other countries is considerably larger. In discussion of the roles of various countries in the EU it would have been appropriate to point out how the economic policies demanded by Germany have undermined its rivals.
The Washington Post had a piece assessing the power relationships in the European Union after the departure of the United Kingdom. The piece discusses whether Germany will play an even more important role. When it turns to potential rivals the piece tells readers:
“France is mired in economic woes and a war on terrorism. Spain and Italy face massive unemployment and political instability.”
It would have been worth pointing out that the reason France is mired in economic woes and that Spain and Italy face massive unemployment and political instability is the austerity policies demanded by the Germans. As a result of these policies, countries are being forced to constrain their budget deficits even as long-term interest rates are near or below zero and inflation is under 1.0 percent.
According to a new study from the European Central Bank, the euro zone’s economy is 6.0 percent below its potential level of output. With Germany near or at its potential level of output this means that the output gap in other countries is considerably larger. In discussion of the roles of various countries in the EU it would have been appropriate to point out how the economic policies demanded by Germany have undermined its rivals.
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The folks at National Public Radio assume you all know the answer to that question. Why else would they tell listeners in a piece on migrant workers in the UK after the Brexit vote that:
“Analysts estimate that Lithuanian workers abroad send home more than $300 million a year.”
Hmmm, is that a big deal for Lithuania’s economy? If you had to look up Lithuania’s GDP to answer that question, you probably weren’t alone among NPR listeners. The IMF tells us that Lithuania’s GDP will be around $43 billion for 2016, which means that the $300 million in annual wages being repatriated is equal to roughly 0.7 percent of the country’s GDP.
If harsher immigration rules caused this sum to be cut back by a third or even half, that would be bad news for Lithuania’s economy, but not the sort of thing that is likely to send it into a recession. Anyhow, it would not have taken NPR’s reporters too much time to look up Lithuania’s GDP so that they could have presented a meaningful number to their listeners. As it is, they could have just saved some time by leaving this number out altogether. They were not providing information with it.
The folks at National Public Radio assume you all know the answer to that question. Why else would they tell listeners in a piece on migrant workers in the UK after the Brexit vote that:
“Analysts estimate that Lithuanian workers abroad send home more than $300 million a year.”
Hmmm, is that a big deal for Lithuania’s economy? If you had to look up Lithuania’s GDP to answer that question, you probably weren’t alone among NPR listeners. The IMF tells us that Lithuania’s GDP will be around $43 billion for 2016, which means that the $300 million in annual wages being repatriated is equal to roughly 0.7 percent of the country’s GDP.
If harsher immigration rules caused this sum to be cut back by a third or even half, that would be bad news for Lithuania’s economy, but not the sort of thing that is likely to send it into a recession. Anyhow, it would not have taken NPR’s reporters too much time to look up Lithuania’s GDP so that they could have presented a meaningful number to their listeners. As it is, they could have just saved some time by leaving this number out altogether. They were not providing information with it.
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A new study from the European Central Bank (not official bank policy) estimated the size of the output gap in the euro area at 6.0 percent of GDP. Most analyses put the cost to the UK’s from its exit from the European Union at around 2.0 percent of GDP. If the ECB’s estimate of the output gap is correct, then austerity is imposing three times as much harm on the euro zone countries as Brexit is projected to impose on the UK.
A new study from the European Central Bank (not official bank policy) estimated the size of the output gap in the euro area at 6.0 percent of GDP. Most analyses put the cost to the UK’s from its exit from the European Union at around 2.0 percent of GDP. If the ECB’s estimate of the output gap is correct, then austerity is imposing three times as much harm on the euro zone countries as Brexit is projected to impose on the UK.
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It is possible to make serious arguments against Donald Trump’s views on trade, but apparently the Washington Post can’t find anyone with sufficient knowledge and skills. Instead they assigned Fareed Zakaria the task and he failed badly.
Zakaria tells readers:
“The appeal of both Trump and Sanders has many politicians mouthing cliches about the deep problems with globalization. It is true that two gifted populists have been able to give voice to people’s fears about a fast-changing world. But this does not alter the truth. Their central charge is false. Free trade has not caused the hollowing out of U.S. manufacturing.
“Manufacturing as a share of all U.S. jobs has been declining for 70 years, as part of a transition experienced by every advanced industrial economy.”
If Zakaria had access to data from the Bureau of Labor Statistics he would have better knowledge of trends in employment in U.S. manufacturing.
Jobs in Manufacturing Industries
Source: Bureau of Labor Statistics.
As can be seen, employment in manufacturing hovered near 17.5 million from the late 1960s until 2000. At that point, the explosion in the size of the U.S. trade deficit sent employment in manufacturing plummeting. We lost roughly over 3 million manufacturing jobs in this period, almost 20 percent of total employment, before the onset of the recession. It is difficult to believe that a Washington Post columnist could be so ignorant of these data and still be writing a column on the topic.
It is also important to note that Zakaria insists on saying the United States has been pursuing a policy of free trade even though this is clearly not the case. Under U.S. law, it is necessary to go through a residency program in the United States to practice as a doctor. It is necessary to go to a U.S dental school (or recently a Canadian school) to be a dentist. Does anyone seriously believe that the only way to be a competent doctor is to go through a U.S. residency program or to be a competent dentist is to go to a U.S. dental school?
These protectionist barriers inflate the pay of both doctors and dentists and add over $100 billion a year to our health care bill. Are we supposed to believe columnists at the Post are too stupid (to use Trump’s word) to notice this fact?
What about patent and copyright protection? We will spend over $430 billion this year for prescription drugs that would likely cost around one-tenth this price in a free market. This is massive protectionism that imposes enormous costs on people’s health. Did this also escape Zakaria’s attention? (There are more efficient ways to finance drug research.)
Trump is obviously a blowhard without a coherent trade or economic policy, but in this battle he beats Zakaria hands down.
It is possible to make serious arguments against Donald Trump’s views on trade, but apparently the Washington Post can’t find anyone with sufficient knowledge and skills. Instead they assigned Fareed Zakaria the task and he failed badly.
Zakaria tells readers:
“The appeal of both Trump and Sanders has many politicians mouthing cliches about the deep problems with globalization. It is true that two gifted populists have been able to give voice to people’s fears about a fast-changing world. But this does not alter the truth. Their central charge is false. Free trade has not caused the hollowing out of U.S. manufacturing.
“Manufacturing as a share of all U.S. jobs has been declining for 70 years, as part of a transition experienced by every advanced industrial economy.”
If Zakaria had access to data from the Bureau of Labor Statistics he would have better knowledge of trends in employment in U.S. manufacturing.
Jobs in Manufacturing Industries
Source: Bureau of Labor Statistics.
As can be seen, employment in manufacturing hovered near 17.5 million from the late 1960s until 2000. At that point, the explosion in the size of the U.S. trade deficit sent employment in manufacturing plummeting. We lost roughly over 3 million manufacturing jobs in this period, almost 20 percent of total employment, before the onset of the recession. It is difficult to believe that a Washington Post columnist could be so ignorant of these data and still be writing a column on the topic.
It is also important to note that Zakaria insists on saying the United States has been pursuing a policy of free trade even though this is clearly not the case. Under U.S. law, it is necessary to go through a residency program in the United States to practice as a doctor. It is necessary to go to a U.S dental school (or recently a Canadian school) to be a dentist. Does anyone seriously believe that the only way to be a competent doctor is to go through a U.S. residency program or to be a competent dentist is to go to a U.S. dental school?
These protectionist barriers inflate the pay of both doctors and dentists and add over $100 billion a year to our health care bill. Are we supposed to believe columnists at the Post are too stupid (to use Trump’s word) to notice this fact?
What about patent and copyright protection? We will spend over $430 billion this year for prescription drugs that would likely cost around one-tenth this price in a free market. This is massive protectionism that imposes enormous costs on people’s health. Did this also escape Zakaria’s attention? (There are more efficient ways to finance drug research.)
Trump is obviously a blowhard without a coherent trade or economic policy, but in this battle he beats Zakaria hands down.
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Sure, it’s tough to get a job in reporting that pays a decent wage. But now you can get on the fast track to a successful career in journalism by writing pieces that make fun of opponents of U.S. trade policy.
No knowledge of the economic theory of trade or actual trade practices is required. You just have to be able to trivialize any argument against a current or future trade deal by saying that opponents want to end trade and close borders. Apply at the Atlantic or other major news outlets.
Sure, it’s tough to get a job in reporting that pays a decent wage. But now you can get on the fast track to a successful career in journalism by writing pieces that make fun of opponents of U.S. trade policy.
No knowledge of the economic theory of trade or actual trade practices is required. You just have to be able to trivialize any argument against a current or future trade deal by saying that opponents want to end trade and close borders. Apply at the Atlantic or other major news outlets.
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The NYT ran an article on how France’s far-right sees the vote in the UK for leaving the European Union as a boost to its own efforts. After outlining the state of anti-EU sentiment in France, the piece tells readers:
“Given the array of other issues facing France, including a near-stagnant economy and high unemployment, it remains to be seen how central an issue membership in the bloc might be in the presidential race.”
Actually, since France is in the euro (unlike the UK), its stagnant economy is very directly linked to its membership in the EU. The rules imposed on it by the EU leadership have prevented it from adopting the sort of stimulus that would be needed to boost its growth and reduce unemployment. It would be very surprising if this issue were not front and center in France’s presidential race since it is so important in people’s lives. The EU is forcing both a deterioration in the quality of France’s public services and higher unemployment with its pointless austerity policies.
The NYT ran an article on how France’s far-right sees the vote in the UK for leaving the European Union as a boost to its own efforts. After outlining the state of anti-EU sentiment in France, the piece tells readers:
“Given the array of other issues facing France, including a near-stagnant economy and high unemployment, it remains to be seen how central an issue membership in the bloc might be in the presidential race.”
Actually, since France is in the euro (unlike the UK), its stagnant economy is very directly linked to its membership in the EU. The rules imposed on it by the EU leadership have prevented it from adopting the sort of stimulus that would be needed to boost its growth and reduce unemployment. It would be very surprising if this issue were not front and center in France’s presidential race since it is so important in people’s lives. The EU is forcing both a deterioration in the quality of France’s public services and higher unemployment with its pointless austerity policies.
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