06-01-2010, 06:42 PM
(06-01-2010, 04:37 PM)Jester Wrote: This is why the correct policy is almost always to use government power to help adapt to the marketplace, rather than to thwart it.Unfortunately, government almost always chooses the wrong way to help. Usually, they offer subsidies, impose tariffs, or attempt to shore up the failing industry through tax incentives, rather than allowing the marketplace to operate unhindered. A thoughtful approach by government to Lissa's loss of logging industry would be to reconsider the potential of such an area, and offer incentives for new ventures to diversify that economic space, and to offer stipends for the education of the workers into a new line of work. Better yet; if both governments would quit meddling with the industry, it would equalize both in terms of product price, and the cost of labor regardless of position relative to the border. Northern Minnesota has the same issue with iron mines. Our solution has been to do just what I suggested, diversify the regions economy. They have developed tourism, converted to taconite technology, and recruited new industries appropriate to our area (hockey equipment, snowmobiles, and triple glazed window makers).
Thoughtful, painless change can occur. For example, in a manufacturing plant where I worked, we purchased about 10 very cool welding robots that were very, very good at long straight (and tedious back breaking) welds. But, there was still need for some welders to do the tricky (and more fun) welding. This is progress, however, we slimmed down the welding crew by about 6 welders, retraining some into other equivalent jobs, and some were offered an early retirement package. The money that used to pay the 6 welders, was not saved however, it went to pay for people who encode and service the robots. The advantage was in reducing the time for the product assembly on the line, the ability to reduce standing inventory (due to the increased speed), the quality of the product, and to remove the back breaking labor resulting in a hazard for workers. Everyone wins, except perhaps if a few welders, really, really wanted to remain welders, and so, when ready to change companies, could opt to work as a welder in some other company.
In other cases, such as the makers of buggy whips, you might just need to get a different profession. Government usually is not pro-active, resulting in years or decades of suffering until enough changes to revitalize an area.
Another issue I have is that some places are just not very good places for people to live, and so the misery expressed by the destitute who choose to live in a desolate, or wilderness area is a natural result of their choice. But, somehow they are convinced the world owes them a standard of living commensurate with others living in productive areas. If you find life is crap, maybe the first step is to get out of the toilet.