More Thinking on the Stimulus

Rich Florida cited on his blog a study by Greg Linden, Jason Dedrick and Ken Kraemar, of the Personal Computing Industry Center at UC Irvine  that concluded the "iPod and its components accounted for about 41,000 jobs worldwide, of which about 27,000 are outside the U.S. and 14,000 in the U.S. The offshore jobs are mostly in low-wage manufacturing while the jobs in the U.S. are more evenly divided between high wage engineers and managers and lower wage retail and non-professional workers. As a result of this, and of cross-country wage differences, U.S. workers earned $753 million, while workers outside the U.S. earned $318 million."

Rich concludes the study shows "why bailouts of production operations promise far fewer economic benefits than investments in innovation. We need stop trying to slow down the process of creative destruction.  More innovation creates more jobs here and good manufacturing jobs abroad."

  

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