Why Don’t All Jobs Matter?

In Economy, Paul Krugman On
- Updated

So will the Trump administration ever do anything substantive to bring back mining and manufacturing jobs? Probably not.

But let me ask a different question: Why does public discussion of job loss focus so intensely on mining and manufacturing, while virtually ignoring the big declines in some service sectors?

Over the weekend The Times Magazine published a photographic essay on the decline of traditional retailers in the face of internet competition. The pictures, contrasting “zombie malls” largely emptied of tenants with giant warehouses holding inventory for online sellers, were striking. The economic reality is pretty striking too.

. . .

But, you ask, what can we do to stop service-sector job cuts? Not much — but that’s also true for mining and manufacturing, as working-class Trump voters will soon learn. In an ever-changing economy, jobs are always being lost: 75,000 Americans are fired or laid off every working day. And sometimes whole sectors go away as tastes or technology change.

While we can’t stop job losses from happening, however, we can limit the human damage when they do happen. We can guarantee health care and adequate retirement income for all. We can provide aid to the newly unemployed. And we can act to keep the overall economy strong — which means doing things like investing in infrastructure and education, not cutting taxes on rich people and hoping the benefits trickle down.

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