According to Anne Krueger, a former World Bank chief economist, the U.S.
under Trump is playing on its weakness rather than from its strength.
In the 19th century, 70% of American workers were in the farming
sector. In 2017, it was only 2%. In 1970, 32% of private employment was in
goods producing industries. The figure in 2018 was 13.5%. The dynamic sector of
the U.S. economy is services – not house cleaners or maintenance crews but
transportation, IT, finance, professional and business services, education,
entertainment and many more. Of all private sector employment, 70% is in
services. So you have the likes of Google, Microsoft, Oracle, Disney, 20th
Century Fox, Amazon, McKinsey and many more.
With affluence, people spend more on travel, entertainment, education,
healthcare and others. The U.S. leads the world in many services. In 2017,
America’s export of services was USD798 billion while imports was USD542
billion. And services exports have been growing rapidly compared to exports of
goods.
As technology accelerates, it is the services sector that will provide future
employment not coal, steel or farming. Trump has no grasp of this, as he reads
little and follows “Fox News” for ideas! That is the self-proclaimed genius of
a President! And America will pay a heavy price if the President prevails with
his silly obsession, i.e. trade balance!
Reference:
Trump’s Anti-Service Economy, Anne O
Krueger
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