Later On

A blog written for those whose interests more or less match mine.

Why Don’t All Jobs Matter?

leave a comment »

Paul Krugman asks a pertinent question in the NY Times:

President Trump is still promising to bring back coal jobs. But the underlying reasons for coal employment’s decline — automation, falling electricity demand, cheap natural gas, technological progress in wind and solar — won’t go away.

Meanwhile, last week the Treasury Department officially (and correctly) declined to name China as a currency manipulator, making nonsense of everything Mr. Trump has said about reviving manufacturing.

So will the Trump administration ever do anything substantive to bring back mining and manufacturing jobs? Probably not.

But let me ask a different question: Why does public discussion of job loss focus so intensely on mining and manufacturing, while virtually ignoring the big declines in some service sectors?

Over the weekend The Times Magazine published a photographic essay on the decline of traditional retailers in the face of internet competition. The pictures, contrasting “zombie malls” largely emptied of tenants with giant warehouses holding inventory for online sellers, were striking. The economic reality is pretty striking too.

Consider what has happened to department stores. Even as Mr. Trump was boasting about saving a few hundred jobs in manufacturing here and there, Macy’s announced plans to close 68 stores and lay off 10,000 workers. Sears, another iconic institution, has expressed “substantial doubt” about its ability to stay in business.

Overall, department stores employ a third fewer people now than they did in 2001. That’s half a million traditional jobs gone — about eighteen times as many jobs as were lost in coal mining over the same period.

And retailing isn’t the only service industry that has been hit hard by changing technology. Another prime example is newspaper publishing, where employment has declined by 270,000, almost two-thirds of the work force, since 2000.

So why aren’t promises to save service jobs as much a staple of political posturing as promises to save mining and manufacturing jobs?

One answer might be that mines and factories sometimes act as anchors of local economies, so that their closing can devastate a community in a way shutting a retail outlet won’t. And there’s something to that argument.

But it’s not the whole truth. Closing a factory is just one way to undermine a local community. Competition from superstores and shopping malls also devastated many small-city downtowns; now many small-town malls are failing too. And we shouldn’t minimize the extent to which the long decline of small newspapers has eroded the sense of local identity.

A different, less creditable reason mining and manufacturing have become political footballs, while services haven’t, involves the need for villains. Demagogues can tell coal miners that liberals took away their jobs with environmental regulations. They can tell industrial workers that their jobs were taken away by nasty foreigners. And they can promise to bring the jobs back by making America polluted again, by getting tough on trade, and so on. These are false promises, but they play well with some audiences.

By contrast, it’s really hard to blame either liberals or foreigners for, say, the decline of Sears. (The chain’s asset-stripping, Ayn Rand-loving owner is another story, but one that probably doesn’t resonate in the heartland.)

Finally, it’s hard to escape the sense that manufacturing and especially mining get special consideration because, as Slate’s Jamelle Bouie points out, their workers are a lot more likely to be male and significantly whiter than the work force as a whole. . .

Continue reading.

Written by LeisureGuy

17 April 2017 at 10:29 am

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s