Wisconsin Public Radio

Manufacturing is still critical to the economy United States. Clyde Prestowitz, says it's time to start realizing the positive spillovers that manufacturing creates... Read more  

Events & Activities

Stephen Olson at Chinese Development Institute Conference

 

 Clyde Prestowitz giving presentation to CDI...

 

Steve Olson teaching trade negotiations at the Mekong Institute...

 

Stephen Olson to speak at upcoming workshop organized by the International Institute for Trade and Development on 

"Economics of GMS Agricultural trade in goods and services towards the world market"

Chiangmai, Thailand Sep 8-12.

(11/16/10) Prestowitz cited in Richmond Times Dispatch on job creation

Public, Private: Mixing Bowl

Item (1): Saturday's Times-Dispatch reported that Northrop Grumman plans to cut 380 salaried jobs at its shipyard in Newport News. The reductions are occurring in part because the corporation is nearing the completion of "major milestones in existing contracts." The yard employs about 20,000 workers; it makes ships for the Navy.

Item (2): Last week shares in Cisco tumbled after the computer company reported a decline in government contracts. The Washington Post reported that Cisco "gets about 22 percent of its business from the public sector." The news has implications for other companies that profit from government spending.

The two items tell a larger story. Northrop Grumman and Cisco belong to the private sector. The politicians, economists, scriveners, and others who credit private businesses with creating jobs presumably include the two firms. Yet as the stories cited above suggest, the private sector reaps significant gains from public spending. Indeed, Northrop Grumman and Cisco are but two examples. When jurisdictions such as those in Central Virginia build schools, libraries, and other public buildings, private contractors do much of the work. Recent weeks have seen news about state incentives for companies opening or enhancing operations in Virginia. Public money seeds private jobs.

Click Here to read the entire editorial at the Richmond Times Dispatch.

Join our mailing list

Latest Publications


The Betrayal of American Prosperity.


The Trans-Paific Partnership and Japan.


Making the Mexian Miracle.


Industrial Policy and Rebalancing in the US and China.


The Evolving Role of China in International Institutions.

 

Contact us

Economic Strategy Institute

1730 Rhode Island Avenue, NW, Suite 414 |  Washington DC  |  20036
Ph (202) 213-7051  |  Fax (202) 965-1104  |  info@econstrat.org