Read on Twitter
1/Let& #39;s talk about the two-track economy that I think Bidenomics is trying to create. https://www.bloomberg.com/opinion/articles/2021-04-12/beating-china-won-t-help-biden-reach-full-u-s-employment?sref=R8NfLgwS">https://www.bloomberg.com/opinion/a...
2/Basically the idea is that Biden wants to have super-competitive export industries to raise productivity, and then have domestic-focused service industries provide mass employment.
It& #39;s actually a smart plan. https://noahpinion.substack.com/p/bidenomics-explained">https://noahpinion.substack.com/p/bidenom...
It& #39;s actually a smart plan. https://noahpinion.substack.com/p/bidenomics-explained">https://noahpinion.substack.com/p/bidenom...
3/The cutting-edge industries just don& #39;t generate a ton of employment anymore.
This is partly because of technology, and partly because Asia has become the workshop of the world, which requires the U.S. to become the world& #39;s research park.
This is partly because of technology, and partly because Asia has become the workshop of the world, which requires the U.S. to become the world& #39;s research park.
4/If we& #39;re going to compete with China, we& #39;re going to need lots of robots and lots of high-skilled immigrants.
This is a program for productivity, NOT a program for mass employment.
So we need a second track for mass employment. https://www.bloomberg.com/opinion/articles/2021-04-06/beating-china-means-the-u-s-must-keep-its-research-lead">https://www.bloomberg.com/opinion/a...
This is a program for productivity, NOT a program for mass employment.
So we need a second track for mass employment. https://www.bloomberg.com/opinion/articles/2021-04-06/beating-china-means-the-u-s-must-keep-its-research-lead">https://www.bloomberg.com/opinion/a...
5/Remember how in the 90s we thought everyone would become a computer programmer, just like everyone had been an assembly-line worker back in the day?
Yeah, no. That was never going to happen.
Yeah, no. That was never going to happen.
6/Instead, most Americans will get jobs taking care of each other in various ways.
Preparing and serving food.
Treating each other& #39;s ailments.
Helping kids and old people.
Installing fire alarms.
Giving financial advice.
Teaching. Transportation. Psychotherapy.
Etc.
Preparing and serving food.
Treating each other& #39;s ailments.
Helping kids and old people.
Installing fire alarms.
Giving financial advice.
Teaching. Transportation. Psychotherapy.
Etc.
7/Biden understands this, so his economic program doesn& #39;t just focus on the competitive, lean, productivity-boosting knowledge industries. He focuses on mass-employment service industries too.
Smart!
Smart!
8/But there& #39;s a danger here, which is that this bifurcation could exacerbate economic class divisions.
A mid-career software engineer at a top company gets paid $400k a year or more. What does an elder care worker make?
A mid-career software engineer at a top company gets paid $400k a year or more. What does an elder care worker make?
9/In order to prevent class bifurcation -- and all the bruising fights over education, diversity, and other "gatekeeping" issues that go along with that bifurcation -- we can and should use the tax system to redistribute income.
10/But if we redistribute so much income that all the top talent goes to China, that& #39;s a problem. Japan has encountered this problem; its corporate system holds down the salaries of top talent, so top talent doesn& #39;t go to work for Japanese companies.
11/So we have to walk a middle path between bifurcation and leveling. There& #39;s a tradeoff here.
The two-track economy is smart, but it isn& #39;t perfect. No system is. We have to balance the risks as best we can.
(end) https://www.bloomberg.com/opinion/articles/2021-04-12/beating-china-won-t-help-biden-reach-full-u-s-employment?sref=R8NfLgwS">https://www.bloomberg.com/opinion/a...
The two-track economy is smart, but it isn& #39;t perfect. No system is. We have to balance the risks as best we can.
(end) https://www.bloomberg.com/opinion/articles/2021-04-12/beating-china-won-t-help-biden-reach-full-u-s-employment?sref=R8NfLgwS">https://www.bloomberg.com/opinion/a...
