More false dichotomies I guess.
The other week, I shared an article by Christina Romer claiming that there was nothing special about manufacturing - nothing that deserved special treatment, particularly.
Tyson, in a response titled "Why Manufacturing Still Matters", disagreed, claiming that she was "one of a rare group of economists who believe that “manufacturing matters” for the health of the American economy".
Hmm... I think you guys are talking past each other. Surely for Romer to say that there's nothing special about manufacturing is not the same thing as saying that manufacturing doesn't matter! Of course it matters! Manufacturing makes us stuff, and we like stuff, and we need stuff to live civilized lives.
Tyson is offering something that's not as "heretical" as she seems to think. I think we all think that "manufacturing matters". If it didn't matter, we wouldn't do it! The question is - does it matter more than other economic activities, such that it deserves some special treatment?
Every time Nick Rowe writes a macro post...
6 hours ago