Recently sectoral change is one of the most discussed topics in US politics and economics. It is strongly connected with the issue of the shift from the manufacturing sector to the service
sector and shows the fear of many Americans of losing manufacturing ability and becoming highly dependent on emerging, low labour cost countries like China. Many American citizens
and politicians are very concerned and want the Government to act.
My thesis is that the government should not do something about the sectoral change but for the sectoral change.
Inhaltsverzeichnis (Table of Contents)
- Sectoral Change in the US Economy
- The Three Sectors
- Reasons for the Sectoral Shift
- Protectionism and Subsidies
- Free Trade Theory
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This essay examines the issue of sectoral change in the US economy, focusing on the shift from manufacturing to the service sector. It analyzes the role of free trade and globalization in this shift, as well as the potential consequences of protectionist policies.- The decline of the US manufacturing sector
- The rise of the service sector in the US economy
- The role of globalization and free trade in sectoral change
- The potential benefits and drawbacks of protectionist policies
- The economic theories underlying free trade and protectionism
Zusammenfassung der Kapitel (Chapter Summaries)
- The essay begins by describing the dramatic shift from the manufacturing sector to the service sector in the US economy, highlighting the decline in manufacturing jobs and the growth of the service sector.
- It then explores the reasons for this shift, focusing on the role of increasing mechanization and automation, demographic changes, and globalization. The essay emphasizes the impact of job dislocation to emerging countries like China and India due to lower labor costs.
- The essay then delves into the debate surrounding protectionism and subsidies as potential responses to the sectoral shift. It outlines the potential advantages and disadvantages of these policies, including the "infant industry argument" and the "wealth condensation argument."
- Finally, the essay contrasts protectionist policies with the principles of free trade. It introduces the theories of Adam Smith and David Ricardo, emphasizing the potential benefits of free trade for both countries involved.
Schlüsselwörter (Keywords)
The key themes of this essay revolve around sectoral change, free trade, globalization, protectionism, subsidies, manufacturing decline, service sector growth, and economic theory. The essay explores the impact of these factors on the US economy and the ongoing debate surrounding the role of government intervention in a globalized marketplace.Frequently Asked Questions
What is sectoral change in the US economy?
Sectoral change refers to the dramatic shift of the US economy from the manufacturing sector to the service sector, resulting in a decline of industrial jobs and growth in services.
What are the main reasons for the shift to the service sector?
Key reasons include increasing mechanization and automation, demographic changes, and globalization, which leads to job dislocation to countries with lower labor costs like China and India.
Should the US government intervene in sectoral change?
The essay argues that the government should not act "about" the change (stopping it) but "for" the change, facilitating the transition rather than fighting economic trends.
What is the "infant industry argument" in the context of protectionism?
It is an economic rationale for protectionism, suggesting that new industries need protection from international competition until they are mature enough to compete on their own.
How do Adam Smith and David Ricardo view free trade?
They emphasize the potential benefits of free trade for all involved countries, suggesting that specialization and open markets lead to greater overall wealth compared to protectionism.
- Arbeit zitieren
- Philipp Klösel (Autor:in), 2007, Should the U.S. government “do something” about sectoral change in the economy?, München, GRIN Verlag, https://www.grin.com/document/130272
