Smith on Jobs
7 January 2007
The Editor, New York Times Book Review
229 West 43rd St.
New York, NY 10036
To the Editor:
Reviewing P.J. O'Rourke's "On 'The Wealth of Nations'" (Jan. 7), Allan Stone admits that he has read only a few pages of Adam Smith's Wealth of Nations. I admire Mr. Stone's candor. I also believe that if he had read Smith carefully he would stop fretting about America "exporting manufacturing jobs."
Were Adam Smith alive today he would ask if Mr. Stone worries about technological advances. After all, jobs are forever being destroyed by mechanization that increases each worker's output. This rise in productivity releases many workers to produce other goods and services that previously were too costly to produce. As a result, the economy's output expands - in large part because many manufacturing jobs are "exported" to machines. Assuming that Mr. Stone rejects the Luddite fear of technology, he should reject also the mercantilist fear of imports.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
The Editor, New York Times Book Review
229 West 43rd St.
New York, NY 10036
To the Editor:
Reviewing P.J. O'Rourke's "On 'The Wealth of Nations'" (Jan. 7), Allan Stone admits that he has read only a few pages of Adam Smith's Wealth of Nations. I admire Mr. Stone's candor. I also believe that if he had read Smith carefully he would stop fretting about America "exporting manufacturing jobs."
Were Adam Smith alive today he would ask if Mr. Stone worries about technological advances. After all, jobs are forever being destroyed by mechanization that increases each worker's output. This rise in productivity releases many workers to produce other goods and services that previously were too costly to produce. As a result, the economy's output expands - in large part because many manufacturing jobs are "exported" to machines. Assuming that Mr. Stone rejects the Luddite fear of technology, he should reject also the mercantilist fear of imports.
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Posted by Don Boudreaux on
Monday September 17, 2007 at 5:55pm