Commentary on Gregory Tassey’s “Rationales and mechanisms for revitalizing US manufacturing R&D strategies”
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Gregory Tassey is one of the country’s leading experts on technology issues and his article on the problems with US manufacturing and technology policy deserves respect. I agree with much of what he says, but in the spirit of constructive criticism I will focus on the ways in which I disagree.
The current state of the US economy and of the manufacturing sector is terrible. There is over 10% unemployment and manufacturing has lost over two million jobs in the downturn. The cause of the current economic downturn has nothing to do with technology and everything to do with the financial crisis. The loss of jobs in manufacturing since 2007 was the result of the global collapse in demand for capital goods, and the sharp decline of demand in the US for construction materials, cars and other goods. The recession was made here at home. A variety of economic policies to address the recession has already been undertaken and they are working so far. The Federal Reserve and the Treasury have...