Date: 7 Apr 13
By: Frank Gue, B.Sc., MBA, P.Eng., Burlington, ON Canada L7R 2B5
For: Editors, The Economist
Re: Christ Pissarides and the Nobel Prize, P. 49, March 30th edition
File: EconomistApril13reManufacturing (Lexar)
Mr. Chris Pissarides is quoted as saying that relying on business services and tourism in an economy with no manufacturing tradition is quite sensible.
Mr. Pissarides must be asked to return his Nobel Prize and the cash that went with it. Supporting this suggestion is a brief observational study of the worldwide move away from manufacturing and into services, couched in time-tested principles, adages, or aphorisms:
* There are only three sources of tangible wealth: agriculture, extraction, and manufacturing. Authority: A fact of life.
* There can be no consumption without production. Authorities: (a) Practically, a fact of life, (b) Philosophically, “If they will not work, let them not eat,” 2nd Thessalonians, 3:10.
* The country that loses its manufacturing has lost its engine. Authority: Akio Morita, former President, Sony Corporation.
* Whom the gods hate, they give abundant natural resources. Evidence: The newspapers with any news of Alberta’s budget woes or Ontario’s decimated manufacturing sector, eg The Economist, p. 37, March 30 edition.
* We can’t make a living taking in each others’ washing. Authority: (the highest of the lot): your great grandma.