Class summary 10/26

Econ 10/26/11

Two way to wealth:

Getting people work

Getting more productive

The improvement of technology takes away some manufacturing jobs

Rizzo’s job exists because of international students are trading with him

Trade makes us rich, by trading; there are more opportunities for you to get a new job if you lose your current job

Trade does not cause job lost

Job’s cost and benefit

Exports – Imports = Trade Balance (goods & service)

U.S. imports much more from other counties than other countries imports from U.S.

But total employment in the U.S. continues to rise until the “Great Recession”

Trade only effects the composition of the jobs, it has no effect on the total number of jobs.

The share of manufacturing jobs in total employments has plummeted

But there are more jobs created in other fields when the manufacturing jobs lose