Market Correction

2 July 2006

Editor, The Washington Times

Dear Editor:

Alan Tonelson and Peter Kim illogically argue that, because manufacturing industries led U.S. economic growth in the past, the relative decline in U.S. manufacturing in recent years is an ill economic tiding for Americans ("Manufacturing squeeze," July 2).

Would Tonelson and Kim argue also that, because railroads led the growth of the transportation sector 125 years ago, the decline of railroads in recent decades means that our transportation prospects are endangered? Of course not. Americans are increasingly among the world's best service providers -- researchers, insurers, software designers; the list is long and growing. Our economy in general is no more threatened by increased specialization in services and consequent ability to import more manufactured goods than our transportation sector is threatened by our growing reliance upon air transportation.

Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University