The China Deal: If You Can't Sell It, Buy It

[Tom Lehman]

Doug---That has more to do with low interest rates and low energy prices than
anything else.  Two things that have now come to an end.  Nafta has acted as a
break on manufacturing expansion and job creation in the goods producing
sector.  There have been plant closings and job eliminations caused by
NAFTA---now with higher interest rates and higher energy prices the effect of
NAFTA will be more pronounced.

Tom

Doug Henwood wrote:


> Tom Lehman wrote:
>
> >Doug---How long can you hollow out the goods producing sector of the
> >economy?  That's the situation that will prove itself to be
> >unsustainable---the question is how much longer can this trend be pushed,
> >and, at what economic, political and social cost?
>
> The Fed's index of manufacturing production is up 49% since NAFTA
> took effect. How does that qualify as a "hollow[ing] out of the
> goods-producing sector"?
>
> Doug